The group’s latest investment is expected to provide a return of 5.5% based on full occupancy and long-term rental agreement
By ASILA JALIL / Pic By ARIF KARTONO
LEMBAGA Tabung Haji (TH) has signed an agreement with Johor Corp’s wholly-owned subsidiary, Bukit Damansara Development Sdn Bhd, to acquire an office building located in Petaling Jaya, Selangor, for RM147 million.
This marked the pilgrims fund board’s first major investment announcement since it completed the transfer of hundreds of non-performing assets to Urusharta Jamaah Sdn Bhd, a special purpose vehicle under the Ministry of Finance, for a total RM19.9 billion at book value in 2018.
The VSQ1 tower, which measures 2.58 acres (1.04ha) and is equipped with 1,060 parking bays, operates as QSR Brands (M) Holdings Bhd’s headquarters which manages the KFC and Pizza Hut Malaysia fast-food chains.
TH group MD and CEO Datuk Nik Mohd Hasyudeen Yusoff said the group’s latest investment is expected to provide a return of 5.5% based on full occupancy and long-term rental agreement for the building.
He said the group will continue to seek opportunities to invest in property, equity or fixed income to provide great returns to its nine million depositors.
“As our deposits increase, we have to seek opportunities to invest, so that they can receive reasonable returns based on the market out- look today,” Nik Mohd Hasyudeen told a media conference at the VSQ1 building yesterday.
Minister in the Prime Minister’s Department (Religious Affairs) Datuk Seri Dr Zulkifli Mohamad Al-Bakri, who was also present at the event, said the investment reflects TH’s continuous commitment to giving added value and reasonable returns to depositors.
The 20-storey building attracts property investors and buyers as it is situated in a developed town which has a population of more than 600,000 people.
“I believe TH’s investment team, which is composed of professionals and experts in the property and investment field, is able to identify segments that are able to reward the pilgrims fund board with great returns,” he said.
He noted that TH’s total deposits as of Nov 30, 2020, stood at RM75.58 billion, which is the highest in the fund’s history.
Zulkifli said this showed the people’s confidence towards the company although the country is faced with an economic downturn due to the pandemic.
Commenting on the haj and umrah pilgrimages, which is currently on hold due to the pandemic, Nik Mohd Hasyudeen said the country is still waiting for the green light and an explanation on ways to conduct pilgrimages next year from the Saudi Arabia administration.
“A meeting will be held between both governments on the measures and requirements needed. We will plan accordingly and among the matters to be discussed is if Malaysians who are doing pilgrimages will be provided with vaccination.
“We will have to wait for the outcome of the meeting,” he said.
Meanwhile, TH ED for Investment Hizamuddin Jamaluddin said in terms of the group’s strategic asset allocation (SAA), its property segment accounted for 9% or RM7.09 billion of the total investment portfolio.
“TH’s investment in fixed income currently stands at 54% of the total, equity is at RM17.26 billion or 22% of the SAA, while money market is at RM12.68 billion or 16% of the SAA,” he said.
Moving forward, he said the group will focus on developing a sustainable portfolio, as well as restructuring TH’s capability and capacity.
The group also aims to increase investment in fixed income to 58%, while the equity and property segments will be increased to 18% and 11% respectively.
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