KUALA LUMPUR: TH Properties Sdn Bhd, a subsidiary of Lembaga Tabung Haji, is planning to venture into the property development scene in London and Jakarta this year, TH Properties chairman Datuk Azizan Abdul Rahman told TheEdgeProperty.com.
“We are looking at a joint venture (JV) with another developer. Everything is still in the works for now but I can say that this will be a very niche product of about 25 to 35 units planned for 4Q2017. The project will have a gross development value (GDV) of about £72 million (RM394.6 million),” said Azizan, adding that the project will be targeted at local buyers in London who are looking for holiday homes or a property for their children.
Besides London, the developer is also looking at Jakarta. “We see that there is a huge demand for housing especially from the middle class there and we are assessing a potential property development project in Jakarta via a JV.”
However, Azizan noted that they need time to look at and properly understand the land laws in Jakarta as they are different from the land laws in Malaysia.
Apart from their projects in Malaysia, TH Properties currently has two ongoing projects in Sydney, as well as three new projects in New South Wales in Australia.
Its maiden international project, Bay Pavilions, consisting of 273 apartment units, was launched in 2015 with a GDV of approximately A$218 million (RM731 million). It has been fully sold and completed.
Its two ongoing projects are Imperial in Hurstville and One The Waterfront. Imperial in Hurstville, which comprises 227 apartment units and two retail units, was launched in November 2014 and is 97% sold. The handing over of vacant possession is expected to be in March 2018. In November 2015, TH Properties launched the first phase of its third residential project, One The Waterfront which comprises 423 apartment units, which is 64% sold to date. Bay Pavilions and Imperial in Hurstville won the 2016 Sydney Award under Architecture-Residential-Constructed category and Architecture-Proposed category respectively.
“We are now also working on three more projects in New South Wales. We have a residential development in Rockdale comprising 92 units of residential apartments and four units of ground floor retail space which we are targeting to launch in 1Q2017. So far, 62% of the units have been pre-sold. We also have a residential development in Lidcombe comprising 135 units of residential apartments and six units of ground floor retail space which is now in the development approval submission stage whereby it is expected to place mid of this year,” said Azizan.
The group also has another residential development in North Strathfield comprising 154 apartment units with a total GDV estimated at A$110.5 million and is currently in the middle of obtaining the necessary development approvals.
Meanwhile in Malaysia, TH Properties is gearing up for several launches.
“At Bandar Enstek, Nilai, we will be launching some 177 units of double-storey terraced homes with a GDV of RM86.3 million. Prices for the units will tentatively start from RM463,000 onwards,” he offered.
So far, about half of the 5,000-over-acre township has been developed.
Meanwhile, TH Properties’ 450-acre Warisan Puteri township in Jelebu, Mukim Ampangan in Seremban only has a balance of 98 acres left, which is currently being developed into Warisan Puteri 2 where it will launch some 99 units of double-storey terraced homes with prices starting from RM454,300. “They have a total GDV of RM39 million. Built-ups will start from 1,806 sq ft,” Azizan noted.
The group is also planning to launch a 21-storey serviced apartment with 21 retail lots in Kota Bahru, Kelantan called Sofea Residensi with a total GDV of over RM100 million in October. It will be the group’s first project in Kelantan. The built-ups of Sofea Residensi will range from 517 sq ft to 2,812 sq ft with a starting price of RM316,400.
In Kuala Lumpur, it plans to launch a condominium in Sri Petaling in 4Q2017 with built-ups ranging from 650 sq ft to 1,500 sq ft and a GDV of RM350 million.
The group is also currently working on another project in Keramat Green, Setiawangsa, KL comprising of condominiums ranging from 850 sq ft to 1,500 sq ft and link villas of approximately 2,800 sq ft with a GDV of RM550 million.
Azizan noted that the property market slowdown in the country is likely to stretch on until mid-2018 and will only see improvement then.
“The market condition is still looking a bit uncertain as of now. We just saw the election of a new US president and we still need to see what kind of new policies will be adopted. US is still the biggest economy in the world, and we still have to revolve around them,” said Azizan.
However, people still need a roof over their heads and TH Properties is trying to steer in the direction of selling their products at the price range of below RM500,000.
“We can’t wait for the market to adapt to our products; we need to adapt our products to the market. We have a diverse range of products to cater to different segments of the market be they our overseas projects or local projects. For a medium-sized company, we are not doing too bad,” Azizan concluded.
This story first appeared in TheEdgeProperty.com pullout on Jan 20, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.