Tabung Haji buys parcel of land in TRX for RM188.5mil for apartments project

KUALA LUMPUR: Lembaga Tabung Haji (TH) acquired one parcel of land in the Tun Razak Exchange (TRX) financial district for RM188.5mil to develop a block of residential apartments.

Tabung Haji group managing director and CEO Datuk Johan Abdullah had on Thursday denied that the pilgrim fund had purchased two parcels of land in TRX as alleged by a blog.

Johan denied the purchase was a bailout and that the proposal had undergone rigorous due diligence process from the board to the ministry level.

Meanwhile, Johan also said leakages of proposal papers are not proof of approved investment decisions.

In the same statement, however, Johan clarified that TH had an investment in land for the development of a residential tower (property) within the TRX. 

This, he said, was in line with TH's property investment strategy which is to focus on the domestic sector.

"The investment is a commercial decision which fits our risk appetite and has gone through all internal due processes accordingly. 

"The purchase price of the property at RM188.5mil was at a discount to the current market value as appraised by an independent professional valuer," Johan added.

The proposed residential building will be developed by TH's subsidiary, TH Properties Sdn Bhd, which is expected to contribute positively to the Groups future earnings.

Johan said TH would continue to explore investment opportunities in the domestic market as guided by its Strategic Asset Allocation framework.