CEO: Tabung Haji will not sell off TRX land

KUALA LUMPUR (July 26): Tabung Haji has indicated it will not sell the Tun Razak Exchange (TRX) land that it purchased from 1Malaysia Development Bhd (1MDB), as the pilgrimage fund sees long-term value in the piece of land.

According to Bernama, Tabung Haji chief executive officer Datuk Johan Abdullah said the move to acquire the land was based on commercial considerations.

“From the start, the acquisition was based on commercial considerations… we valued it based on a long-term perspective.

“We have received big offers for the land, but we do not intend to sell it off. We believe that we can make long-term income with the investment,” he told reporters, following the launch of Yayasan Tabung Haji today.

Johan added that the fund is in talks with several architecture firms to discuss the concept and development plans for the land.

To recap, Tabung Haji purchased the 0.631ha land for RM188.5 million or RM2,773 per sq ft early last year, which was at a discount to the market value at the time. The purchase was made amid the brouhaha surrounding 1MDB, which led critics to claim it was a bail-out.

In May 2015, the fund considered disposing of its investment in the asset, in line with Prime Minister Datuk Seri Najib Razak’s advise, following the backlash over the acquisition. However, Tabung Haji later said it does not intend to sell and will instead develop high-end apartments on the land. — theedgemarkets.com

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