BANGKOK, May 30 — TH Properties Sdn Bhd (THP) is expanding its property development business by exploring the property market in London, United Kingdom (UK) and Indonesia after having successfully ventured into the real estate sector in Australia.
THP is the property development arm of state-owned pilgrimage fund, Lembaga Tabung Haji (Tabung Haji).
THP Chairman, Datuk Azizan Abd Rahman said property investment was one of the thrusts to generate income for Tabung Haji.
He said THP would spend £32 million (£1=RM5.50) to buy a prime land in London, strategically located between Queensway and Notting Hill, and is within walking distance to Hyde Park and Kensington Palace.
The company would cooperate with its local partner for the development of an apartment project with a total net development value of close to £72 million, he said.
“We are now finalising the purchase agreement (for the land),” he said here recently.
Azizan was in Bangkok to receive an award at the Asia Pacific Property Awards 2017-2018.
Elaborating further, he said initially, the company would focus on modest development in the UK.
“Even though the UK is facing the Brexit issue, the location of the property development is strategic, and the sales prospects for the apartment is very good,” he said.
For the property market in Indonesia, Azizan described the potential in the Republic as huge following the growth in the middle-income group.
“We are looking at this market…for suitable location and partner,” he added.
In Australia, after the success of Bay Pavilion property development in Sydney, THP is implementing another two projects in that city, namely Hurstville and Wentworth Point comprising apartment developments.
Hurstville has a gross development value (GDV) of A$196.3 million while Wentworth Point has a GDV of A$504.5 million.
Azizan said THP made the right decision to venture into the real estate industry in Australia four years ago as it was proven to be profitable.
“Profit contribution from overseas projects to the total profits of THP since two years has reached almost 50 per cent and this trend is expected to continue,” he said.
On local operations, he said THP was in the process of developing Tabung Haji’s assets including the TH Complex at the Kuala Lumpur International Airport and TH Complex in Kuching which is slated for completion at year-end.