KUALA LUMPUR, FEB 5: Lembaga Tabung Haji (LTH) will not sell the much-debated 0.66-hectare land at Tun Razak Exchange (TRX) which it bought over from 1Malaysia Development Bhd (1MDB), but instead develop it into high-end apartments with a gross development value of RM820 million.
Recall that the land acquisition by Tabung Haji drew much criticism, coming at the height of 1MDB’s debt issues, igniting claims of a bail-out. The pilgrim fund then, was urged to sell the land.
Tabung Haji chairman Datuk Seri Abdul Azeez Abdul Rahim however, said yesterday that the tract is now not for sale, despite having obtained an offer which values it at a premium. He claimed that Tabung Haji received a RM250 million offer for the land it purchased for RM188.5 million last April.
Instead, its property arm TH Properties, which is led by deputy managing director and CEO Datuk Johan Abdullah, has been given the mandate to construct apartments on the land.
“When we brought the matter to the parliament for debate, the opposition parties also suggested not to sell as the land is valuable,” he said.
Johan said the project is still at planning stage pending approval from the authorities, but earthworks have started.
“It’s not a normal kind of development, it has to be a high-end one. The model is there, but we really need to look at what the market can afford,” he said, noting that the planned plot ratio is 1:10.