ONE of the most anticipated deals this year is the sale of properties by Lembaga Tabung Haji to Urusharta Jamaah Sdn Bhd, which may cost a whopping RM6 billion, said sources.
Sources said that Urusharta Jamaah, the special purpose vehicle (SPV) set up under the Ministry of Finance to take over RM19.9 billion worth of Tabung Haji’s underperforming properties and equities, is in the midst of identifying properties that it plans to acquire.
“Tabung Haji has 15 office towers and 33 offices nationwide that are worth about RM3 billion. It also owns 0.631ha of land in Tun Razak Exchange that is valued at about RM200 million, seven hotels and four convention centres that are worth just below RM500 million and over RM1 billion worth of foreign assets.
“Due diligence will be undertaken to establish their exact value and evaluate the commercial potential,” a source told NST Property.
Other than the headquarters building in TH Tun Razak Tower, Tabung Haji owns TH Platinum, TH Selborn, TH Uptown, TH Perdana, TH Plaza Sentral, TH Damansara, Bank Islam Tower and Kompleks Pentadbiran Islam Putrajaya.
Tabung Haji has actively invested in real estate markets locally and abroad to diversify its investment portfolio and reap the benefits of capital appreciation while enjoying steady returns over the long term.
According to Tabung Haji’s website, it has 157 real estate assets nationwide and about a dozen overseas.
In Malaysia, Tabung Haji owns office towers (15), offices (33), shop houses (74), complexes (5), residences/rest houses (3), factories (5), hospitals (3), hypermarkets (2) and land (18 parcels).
The pilgrims fund also owns Movenpick Hotel & Convention Centre KLIA, Sepang; TH Hotel & Convention Centre Kuching, Sarawak; TH Hotel & Convention Centre Alor Star, Kedah; TH Hotel & Convention Centre Terengganu; TH Hotel Penang, TH Hotel Kota Kinabalu, Sabah; and TH Hotel Kelana Jaya, Selangor.
Among the overseas properties Tabung Haji owns are Centrica Global Headquarters, 10 Queen Street Place London and Unilever House in United Kingdom; Imperial Hurstville Sydney in Australia; and Hajar Tower Makkah, Al-Haram Hotel Madinah, Al-Saha Hotel Madinah and Al-Anwar Hotel Madinah.
Tabung Haji’s first United Kingdom asset acquisition was 10 Queens Street Place in November 2012.
Ex-Danaharta executive heading SPV?
Urusharta Jamaah is headed by an ex-key executive from Pengurusan Danaharta Nasional Bhd, the former national asset management company.
“The person will look at all the properties that Tabung Haji owns and is responsible for the growth of the SPV. The SPV will take over the assets with an intention to improve them and sell when the property market recovers.
“Tabung Haji can focus on their main objective,which is the pilgrims fund. However, it may retain some assets, especially offices with good yields for recurring income,” said the source.
According to the source, one of SPV’s plans is to see its listing in the future.
The SPV could also launch a property real estate investment trust (REIT).
On December 11 last year, Tabung Haji revealed that the SPV will be acquiring the pilgrim fund’s underperforming properties and equities in exchange for RM10 billion in sukuk and RM9.9 billion in Islamic redeemable convertible preference shares.
Tabung Haji group managing director and chief executive officer Datuk Seri Zukri Samat had said that properties with yields of less than two per cent and equities that have seen impairment of more than 20 per cent will be acquired by the SPV at book value.
Of the assets to be transferred to the SPV, 80 per cent of the total value comprises equities while properties account for the balance 20 per cent.
As at December 31 last year, Tabung Haji had transferred its shareholdings from 32 listed companies, based on Bursa public disclosure.
Bloomberg data showed that Tabung Haji had invested in 89 public-listed companies. However, some of the transfers may not require public disclosure on Bursa as Tabung Haji owns below five per cent stake.