Putih mata, tiada hendaknya

Artist impression of the TRX

Artist impression of the TRX

The 67,954 sq. ft. residential plot which Tabung Haji took up within Tun Razak Exchange (TRX) that became highly contentious after a blog maliciously drawn controversy with the connotation that 8 million plus depositors’ funds are being made to “Bail out 1MDB financial woes”, is still available and yet to be hived-off.

Pro-Anwarista newsportal story:

Tabung Haji yet to sell 1MDB’s TRX land despite claims of ready buyers

BY RAM ANAND Published: 15 June 2015 11:41 PM

Pilgrims fund Lembaga Tabung Haji has yet to finalise the sale of its parcel of land at the Tun Razak Exchange (TRX) project, which it bought from 1Malaysia Development Bhd (1MDB) in April, Putrajaya said today. Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom said Tabung Haji was still evaluating potential buyers, even though its chairman Datuk Seri Abdul Azeez Abdul Rahim had in early May said that the sale will be completed in “a week or two”.

“Tabung Haji is still evaluating all the offers in its effort to make the best decision so that the whole process remains Shariah compliant,” Jamil Khir told the Dewan Rakyat today in response to a question from Tony Pua (DAP-Petaling Jaya Utara). The minister did not provide a specific timeline as to when the sale will be completed.

“We must be very thorough and careful in this sale, it involves the interests of the Muslims, so it’s important that we look after their interests,” he said. Pua later said that the delay was an indication that Tabung Haji was struggling to sell the land.

“The response from the minister is clearly an excuse to cover up the fact that Tabung Haji is having difficulty convincing any buyer to purchase the land for a price higher than what it has paid,” the DAP lawmaker said. Pua said the process to determine a bid for a piece of land would not take six weeks, and warned that a failure to complete the transaction as promised would only prove that no other buyers were interested in the land.

Tabung Haji purchased the land for RM188 million in April to develop a residential tower, 43 times the price the debt-ridden 1MDB had paid for the same plot, which it had bought from the federal government four years ago.

Mindful of a backlash and sensitivity among its depositors over the purchase, Tabung Haji quickly vowed to sell off the land at a profit soon after buying it, saying it had ready buyers which proved that the land had appreciating value and was a profitable venture.

Azeez said the decision to sell the land was on the advice of Prime Minister Datuk Seri Najib Razak, who is also chairman of 1MDB’s advisory board. – June 15, 2015. –

See more at: http://www.themalaysianinsider.com/malaysia/article/tabung-haji-yet-to-sell-1mdbs-trx-land-despite-claims-of-ready-buyers#sthash.7ZsWR2Ym.dpuf

*********************

If this story is true, then TH should not hive-off the only residential parcel within the TRX mega development area.

DAP Chief Propaganda Tony Pua has no right to give unsolicited opinion, because he does neither has the qualification to represent the TH depositors nor qualify to be a depositor to begin with. In fact, he is grossly out of place to make any comments about the TH deal in TRX.

The parcel could be made into a very productive asset with the current development order of 10.47 plot ratio. It means the land now could have a development area (gross floor area – GFA) of 710,000 sq. ft. Of that, a net build up and lettable area of 500,000 sq. ft.

The layout of TRX

The layout of TRX

At current market prices of similar luxurious residential in the area of between RM9.00-12.00, a prudent rental income of RM4.5-6million per month should be attainable.

That is between RM55-72million of income per annum, which is syariah compliant.If factored to the market four years away  on an expected to cater for demand of growth for high end properties, then an annual revenue of RM80-85million could be projected.

There are some points that the public should consider. The RM2,774 psf price that TH paid to TRX isn’t outrageous at all considering that TRX would be spending about RM1,500.00 psf to provide infrastructure for the mega development, which include 3 MRT lines.

The process for the acquisition of this parcel was made across the board, by professionals. TH was pre-qualified by valuers CH Williams in June 2014 and the due diligence by both parties were made from that point. The initial offer by TRX for the parcel was at the value of RM210million.

TH businesses which include income from property investments are being ploughed back as subsidy to undertake pilgrimage on top of dividends paid to depositors annually

TH businesses which include income from property investments are being ploughed back as subsidy to undertake pilgrimage on top of dividends paid to depositors annually

However the came into agreement in Dec 2014 for the deal to be sealed at RM194million. Then came the opportunity for TH to evaluate the proposal for the development of the TRX Signature Tower. After deliberation, TH investment panel deemed that the TRX Signature Tower is unable to be a property of wholesome ‘Syariah Compliant’ because of the nature of potential tenants.

Hence, they decided only for the parcel meant for luxurious residential. So the deal  initial 67,954 sq. ft. parcel was put in back burner and wasn’t inked till April 2015, when TH agreed to pay RM188.5million provided it was done in a bullet payment.

By far, TH got the first mover advantage for TRX where they are in the position to draw the first offers to take up the lease when it is completed. This could be substantiated by the other buildings that is coming up around the area.

It was said the plot where the Harrods Hotel is being built at the moment is acquired and valued at RM7,000 psf.

Star Property story:

Bukit Bintang Harrods Hotel part of RM30bil to be pumped into Malaysia by Qatar

Posted on January 29, 2013 | 5162 views | Topic : Featured, News & Articles. The Harrods Hotel in Kuala Lumpur Artist’s impression of the Harrods Hotel mixed development project at the corner of Jalan Raja Chulan-Jalan Conlay

By Chee Su-Lin | sulin.chee@thestar.com.my

Due to sit on the land off Jalan Raja Chulan that is now occupied by the Seri Melayu restaurant and Chulan Square (which are slated to be demolished), the new Harrods Hotel mixed development recently broke ground and is expected to be completed by 2018.

Besides the hotel, the project comprises two residential towers with apartments, an office building and a retail podium, with direct connectivity to Pavilion mall. The link is not just physical.

The mixed development is a joint venture between Tradewinds Corporation Bhd (controlled by Tan Sri Syed Mokhtar), the Pavilion Group (controlled by Malton Bhd’s Datuk Desmond Lim, among others), and Qatar Holding LLC (controlled by Qatar’s sovereign wealth fund).

The latter two were also owners of Pavilion mall before it was listed as part of the Pavilion REIT. Qatar Holdings bought out London’s famous Knightsbridge shop from Egyptian Mohamed Al-Fayed in 2010. Since then, the new owners have aimed for Harrods to become a “global enterprise that defines the luxury retail and leisure sectors”. Dr Hussain briefing on the Harrods Hotel Dr Hussain brought with him good news of billions of dollars of investment from Qatar.

The company in fact already has stakes in several luxury companies, including French conglomerate LVMH Moet Hennessy Louis Vuitton, US jeweller Tiffany and German car maker Porsche.

Since the credit crunch of 2008 and 2009, Qatar’s sovereign wealth fund has become the world’s global banker of sorts, having also picked up shares in British bank Barclays, British supermarket Sainsbury’s, and US film studio Miramax, among others.

Qatar decided for Malaysia to house one of the world’s first three Harrods hotels because of the country’s good investment environment and because Malaysia gets up to 25 million tourists every year, said Qatar Holding LLC vice chairman Dr Hussain Ali Al-Abdullah at the recent groundbreaking ceremony.

Qatar plans to invest a total of US$10bil (RM30bil) into the country over the next three to four years. Around half of this will be pumped into Johor’s petrochemical hub in Pengerang, he said. Qatar was also a cornerstone investor in Felda Global Ventures, injecting US$100mil (RM300mil) into the listing.

Asked on whether this money would continue to be invested into the country if the government were to change in the next general elections, Dr Hossein said, ““We love Malaysia and we love the people of Malaysia so we will always invest in Malaysia.”

*****************

The fact is that good parcels around the financial and high end districts of Kuala Lumpur especially around the ‘Golden Triangle’ and KLCC neighbourhood are somewhat scarce. TH landed a good opportunity to build a luxurious residential building, where even in the current market, the demand is in high and encouraging.

TH BoD announcing the hasty decision to hive off the 1.6ha TRX parcel a month ago

TH BoD announcing the hasty decision to hive off the 1.6ha TRX parcel a month ago

TH BoD should seriously reconsider Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s ‘suggestion’, especially the heat on the the pressure on the question of the parcel made contentious through social media had withered.

Indonesian Mulia Group’s acquisition of the TRX Signature Tower which was initially offered to TH provided the ‘Putih Mata‘ effect to many level headed Malaysians, including the non-Muslims who are not depositors in TH.

The Star story:

Indonesia’s Mulia Group to develop TRX’s Signature Tower

Wednesday, 13 May 2015 KUALA LUMPUR: Indonesia leading property developer Mulia Group will develop the international financial district Tun Razak Exchange’s (TRX) landmark Signature Tower building. TRX’s master developer 1MDB Real Estate Sdn Bhd and the Mulia Group signed a sale and purchase agreement for the development rights of the plot.

The land transaction is valued at RM665mil. A joint statement released on Wednesday said the Signature Tower building will be a highly visible focal point for TRX. As it will be TRX’s tallest building and have its largest floor plates, the tower is poised to be a Prime Grade A office space in Kuala Lumpur. Mulia Group is the latest investor in the TRX after Lend Lease International, a global property and infrastructure group, which is developing the RM8bil Lifestyle Quarter.

The other investor is Veolia Water Technologies, whose water management technology will halve potable water use in TRX. Commenting on Mulia Group’s entry, 1MDB RE chief executive officer Datuk Azmar Talib said: “We are pleased to have the Mulia Group on board towards realising the potential of the Tun Razak Exchange. This significant investment underscores foreign investor confidence in Malaysia.”

The Mulia Group, which has a leading market share for premium commercial properties in Jakarta, developed, owns and manages seven premier office buildings in Jakarta’s central business district, including the Wisma Mulia 1 and 2. Wisma Mulia 1 and 2 are ranked amongst Jakarta’s tallest and most prestigious office buildings that together house key global and local blue-chip companies in Indonesia.

The Mulia group has also developed and managed internationally renowned hotels, and residential and shopping mall properties. Mulia Group president director and owner Eka Tjandranegara he was excited to embark on the project to develop the Signature Tower to become the new landmark of Kuala Lumpur city. “Our Mulia Group wishes to be an integral part of this iconic state-of-the-art development not only for Malaysia but for the region and beyond.”

“We see TRX’s potential to further develop the city’s role as a financial capital, and the Tun Razak Exchange aids our growth and expansion plans. I am committed to personally seeing this project through, drawing from our vast experience,” he said.

The Mulia Group’s properties also include their award-winning Hotel Mulia Bali which essentially comprises of The Mulia, Mulia Resort & Villas in Nusa Dua, Bali. In the past two years, the resorts have been awarded six prestigious awards by Condé Nast.

TRX’s significant investment in its infrastructure is to create a truly accessible world-class financial hub. Tenants can connect to the city centre and the rest of Greater KL, via the largest integrated underground MRT interchange station.

The MRT will connect TRX to the proposed High Speed Rail terminus station at Bandar Malaysia, linking TRX to Singapore’s financial centre.

********************

Later in the month (next two weekends to be exact), 1MDB real estate arm would reveal the mega master plan of the Bandar Malaysia after the request for proposal (RFP) has been issued last week.. The 486 acres mixed mega development where 220,000 people are expected to work, live and past through daily, is expected to bring a gross development value (GDV) of RM145-150 billion. 

The perception and expectation of 1MDB is expected to change and confidence of moving forward towards the right direction would slowly be restored.

That is hopefully would add confidence that TH did make the sound business decision and should keep and develop the 67,954 sq. ft. TRX residential plot, at the right time and opportunity. Thus, provide the 8 million plus TH depositors the feeling of ‘Putih mata, tiada‘.

*Updated Tuesday 16 June 2015 0800hrs

MPs have stood up and in strong messages urging that TH to hold on to the 67,954 sq. ft. parcel meant for luxurious residential within the TRX mega development.

The Star story:

Published: Tuesday June 16, 2015 MYT 9:38:00 AM
Updated: Tuesday June 16, 2015 MYT 9:40:00 AM

MPs urge Tabung Haji not to sell TRX land

BY YUEN MEIKENG AND RAHIMY RAHIM
KUALA LUMPUR: Several Barisan Nasional MPs have urged Lembaga Tabung Haji to keep the parcel of land it bought from 1Malaysia Development Bhd (1MDB) as it could appreciate in value.

“From a businessman’s point of view, perhaps it is better not to sell the land first. What’s wrong with keeping the land if it could appreciate in value?” Liang Teck Meng (BN-Simpang Renggam) said during a minister’s winding up speech for the debate on the 11th Malaysia Plan in the Dewan Rakyat on Monday.

Datuk Seri Abdul Ghapur Salleh (BN-Kalabakan) added Tabung Haji is not a RM2 company, implying that it has vast experience in investments.

“Don’t sell the land because if we keep it, we stand to gain from it as it will increase in price,” he said of the parcel of land located at the Tun Razak Exchange (TRX).

Amran Ab Ghani (BN-Tanah Merah) also urged for Tabung Haji to reconsider selling the land, saying that those who criticised the decision had ill intentions.

Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom said he would take note of the MPs calls and convey them to the Tabung Haji board to review.

He said all investments are made based on business transactions and not from orders from him or the Government.

Earlier, to a question by Tony Pua (DAP-Petaling Jaya Utara) on the update of offers to buy the TRX land, the minister said Tabng Haji was still evaluating the best offers.

“When we sell the land, we do not just want a return of our capital but we want to make a profit,” he said.

******************

Clearly, the sentiments are for doing the right thing quite against the one being spooked for the sinister instigation by a cowardice blogger who is believed to be obsessed to topple Prime Minister Najib.

*Updated 1100hrs

Published in: on June 15, 2015 at 23:59  Comments (28)