Tabung Haji’s real estate unit TH Properties is now readying to build more projects overseas following the completion of its first international development in Australia two years ago, reported the New Straits Times.
Apart from increasing its presence in Australia, they are considering to expand into Indonesia and the UK, where it is finalising a deal to purchase a land parcel at Baywater in London, according to its Chairman Datuk Azizan Abdul Rahman.
“We are going to sign the agreement soon. We plan to develop an apartment project with a total of 28 units jointly with the landowner.”
With a gross development value (GDV) of over £70 million (RM387.24 million), the project is situated between Notting Hill and Queensway near Hyde Park and Kensington Palace.
“We want to try a modest type of development first. We are confident of this venture. We feel that it is a good location and are upbeat on the prospect of selling the apartment units,” Azizan shared.
In Indonesia, the company is still searching for suitable sites and potential partners to take advantage of the growing demand for mid-scale residential properties.
Meanwhile, he revealed that the company made the correct decision to invest in Australia’s real estate market at an opportune time.
“The timing was very good. For the last two years, our projects in Australia have been giving us good returns. In fact, our overseas investment contributed close to 50 percent of our group profit,” said Azizan.
TH Properties’ first development in the country is Bay Pavilions with a GDV of AU$220 million (RM696.51 million).
Situated at Burns Bay Road Lane Cove, the project features 273 houses and was built by the developer’s fully-owned unit THP Bay Pavilions Corp. Unveiled in late-2013, all the residential units there have been taken up and the keys were issued in 2016.
Besides winning an architectural accolade at last year’s Sydney Award, it is also renowned for being Australia’s first real estate development funded by an Islamic facility, a AU$96 million loan from Maybank Islamic Bhd.
“This was the first syariah-compliant financing facility ever structured for a property development project in Australia and since then, many developers have approached us to partner with us. They see the advantages of Islamic financing, which provides stability as far as financing cost is concerned,” he explained.
At present, TH Properties is working on two other developments in Sydney — Imperial in Hurstville and ONE The Waterfront at Wentworth Point.
With a GDV around AU$200 million, the former consists of 227 apartments and eight retail shops. On the other hand, ONE The Waterfront will contain 678 apartments and is expected to be ready by 2019.
In New South Wales, the developer is currently building three housing projects at Rockdale, Lindcombe and North Strathfield valued at AU$56.9 million, AU$90.68 million and AU$110.5 million respectively.
Image sourced from NST
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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