SYDNEY, Nov 12 — TH Properties Sdn Bhd, the property development arm of Malaysia’s pilgrimage fund Lembaga Tabung Haji, has embarked on further developments with a Gross Development Value (GDV) exceeding A$800 million to meet the rising demand for apartments in Sydney.
It has just completed its A$220 million Bay Pavilions property development project, its first overseas project. Located at Burns Bay Road Lane Cove, the key handover ceremony is held at Lane Cove here Thursday.
Separately, TH Properties has also secured the Imperial Hurstville project located at Treacy Street, Hurstville with the ground breaking ceremony also being held today.
The Bay Pavilions project, undertaken by THP Bay Pavilions Corporation, a wholly-owned subsidiary of TH Properties, comprises 270 residential apartments.
The Imperial Hurstville development, undertaken by THP Australia Corporation, also a wholly-owned unit of TH Properties, consists of 227 residential apartments and eight units of retail shops with a GDV of about A$200 million.
Both THP Bay Pavilions Corporation and THP Australia Corporation have entered into a joint venture with Australian partner Piety Developments Pty Ltd for the two developments.
“In shaping TH Properties’ future, we are constantly on the lookout for strategic alliances that will achieve sustainable growth in our business,” TH Properties Chairman Datuk Azizan Abdul Rahman said at the handover ceremony officiated by Minister in the Prime Minister’s Department Mej-Jen (R) Datuk Seri Jamil Khir Baharom.
“Working with like-minded partners is critical in ensuring success wherever we operate, and we are pleased to have collaborated with the Piety Group in our first foray into international collaboration,” Azizan said.
Azizan noted that Piety Group has a successful track record of delivering lifestyle property developments in Sydney.
“Our collaboration with Piety Group began with a residential project in Waitara, Sydney which was partly funded by Lembaga Tabung Haji via its subscription in the Shariah-compliant Waitara Property Fund,” he said.
Azizan noted that the 50-50 joint venture with Piety Group represents an important step in establishing a platform for further projects overseas.
“Given the strategic importance of Australia and its buoyant property market, we are pleased that this will be the initial focus of our partnership, and we are confident that our first joint development project in Lane Cove will set the pace for future collaborations in Australia,” he said.
It was made to understand that the Bay Pavilions project has pioneered Islamic project finance in Australia, being one of the country’s first Shariah-compliant property developments.
The Bay Pavilions was funded via a A$96 million Islamic term financing provided by Maybank Islamic Bhd, the first Shariah-compliant financing facility ever structured for a property development project in Australia.
Maybank Group will also provide the A$100 million financing for the Imperial Hurstville development.
Maybank Islamic Chief Executive Officer Muzaffar Hisham said Maybank Group is honoured to collaborate with Lembaga Tabung Haji on another milestone project under TH Properties for the Bay Pavilions property development and the Imperial Hurstville project.
He said the venture into Australia demonstrates the diversity of Lembaga Tabung Haji’s properties, noting its investment in the United Kingdom.
“This transaction creates an opportunity for Islamic financing to expand further into cross-border and foreign currency space,” he said.
The Bay Pavillions was launched in late 2013 and is sold out, while the Imperial Hurtstville, launched in November 2014, has a 96 per cent take-up rate as of October 2015.
TH Properties has two other projects in Sydney — the recently launched One The Waterfront at Wentworth Point, and a proposed high-rise apartment to be launched in 2016 at North Strathfield.