KUALA LUMPUR: Tabung Haji group managing director and chief executive officer Datuk Johan Abdullah says it makes business sense to develop the Tun Razak Exchange (TRX) land, which the pilgrims fund bought last year, into a high-value residential development.
Recalling the controversy surrounding the land acquisition, he said: “TRX created quite an interesting episode on the radar screen due to various perceptions in the past. TRX is quite personal to me and I have tried to explain on the business and commercial side of it.
“Looking at what TH Properties (Sdn Bhd) had at that particular time, we were thinking of upscaling for the property arm and considered a high-value residential development.
“We also liked the fact that the land would be ‘equipped’ in terms of infrastructure and connectivity,” said Johan.
TH Properties is a wholly-owned subsidiary of Tabung Haji.
Johan, who is also the board member of LTH Property Holdings Ltd and LTH Property Holdings 2 Ltd, took a step back and recollected on the doubts that not even one KLCC tower could have been constructed, let alone two.
Tabung Haji bought the 0.631ha TRX land from 1Malaysia Development Bhd for RM188.8 million, or RM2,700 per sq ft, last year.
Despite pressures to sell it following outcries from certain quarters, TH Properties decided to develop the plot into high-end apartments.
Its market valuation at the time was RM3,100 per sq ft with an estimated gross development value of RM820 million.