Two of many ways to get the spaces, the first does the newline after the TITLE line, too.

print map {
     chomp;
     $_ . /^TITLE/? "\n" : ' ';
} grep { /$re/ } <FILE>;
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or

{
    local $" = ' ';  # just making sure - this is the default
    print "@{[grep {/$re/} <FILE>]}";
}
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The trinary (?:) operator in the first chooses space or newline depending on the first word.