TH Properties to launch projects worth RM1.1b
Laura Lee 
One of the intermediate unit designs slated for TH Properties’ many projects
Lembaga Tabung Haji’s wholly-owned subsidiary, TH Properties Sdn Bhd, is launching five projects over the next few months in Negeri Sembilan, Selangor, Kelantan and Perlis.

The projects, which have a combined gross development value (GDV) of RM1.09 bil, are the RM550 mil Keramat Green in Taman Keramat Permai, Hulu Kelang in Selangor, RM100.88 mil Sofea Residensi in Kelantan, a yet-to-be-named project in Perlis worth RM311.4 mil, as well as Pristine @ Enstek (RM86.3 mil) and Warisan Puteri 2 (RM39 mil) in Negeri Sembilan.

TH Properties will fully realise the land value by developing these areas, says Azizan

Referring to the pilgrim fund’s pockets of undeveloped land, TH Properties chairman Datuk Azizan Abd Rahman tells FocusM: “We are going to fully realise the value of those locations by developing them.”

To achieve this goal, he says the developer has brought in property industry professionals like Datuk Roszali Othman, from established property companies like Island and Peninsular Bhd.

While these professionals are leading the way in unlocking the developer’s land bank, the emphasis is on the five new projects.

Phase one of Pristine @ Enstek is targeted to be launched in September, says TH Properties general manager of business development, marketing and sales Zaidi Baharudin.

The 43 double-storey terraced houses with four bedrooms and three bathrooms will be priced from RM487,400, he says, adding the Bumiputera lots are from RM439,000.

Pristine @ Enstek, comprising a total of 177 units, will be developed over four phases. Phase two, made up of 48 units, will be launched in November while phases three and four are targeted for launching in April next year and January 2019, respectively.

New designs

On the group’s other project in Negeri Sembilan, Azizan says: “Bandar Warisan Puteri was neglected to some extent initially but we have come up with some new designs and sales have been quite good.”

The group is now focusing on Warisan Puteri 2, which is the final phase of this township at Jalan Sikamat-Jelebu in the mukim of Ampangan, Seremban.

Covering 42.7ha, a total of 1,105 units will be developed by TH Properties’ wholly-owned subsidiary THP Hartanah Sdn Bhd. Its target market is the local community or owner-occupiers from Ampangan, Sikamat, Senawang, Seremban and its vicinity, Azizan says.

On Keramat Green, which sits on the border of Selangor in the Ampang district, TH Properties has submitted its plans to develop 539 condos of 850 to 1,500 sq ft and 84 three-storey linked villas of about 2,800 sq ft.

Prices for its condos and villas are expected to start from RM600 and RM590 per sq ft (psf), respectively.

East Coast focus

In the East Coast, the group is launching in August its Sofea Residensi project in Jalan Doktor in the heart of Kota Bharu, Kelantan, says Azizan.

An artist’s impression of Sofea Residensi, planned for Kota Bharu

Located beside its existing Tabung Haji building, Wisma Ilmu, this project is seen as the new vista for the surrounding developments.

Sited on 0.46ha, the project will comprise a 21-storey block with 248 serviced apartments and 21 retail lots.

“Some of the serviced apartments will be sold while others can be leased back to us to operate. The residents can ask us to provide services on a daily basis and we will charge them accordingly,” Azizan says.

The serviced apartments consist of studios, one- to three-bedroom units and penthouses. Built-ups start from 517 sq ft for the 114 studio units to 2,812 sq ft for the four penthouses. Prices range from RM316,000 or RM612 psf to RM1.8 mil or RM645 psf.

Each unit will be entitled to one parking bay while the penthouse will get two bays each. The project is expected to be completed in August 2020.

In Kuala Perlis, the group plans to do a mixed development on 6.6ha fronting the jetty. Although the project has yet to be named, its components have been identified.

It will comprise a 146,367 sq ft shopping mall, a three-star hotel with 200 rooms, 36 three-storey shop offices, and serviced apartments. In February, TH Properties conducted a ground-breaking ceremony for the RM311.4 mil project, which will be built over five phases and seven years.

Azizan reveals the retail component will be the first to come up for this development and the company is in the midst of finalising its agreement with a supermarket operator.

“We are also talking to a university here which is looking for space for its students’ hostel,” he says, adding that if the deal is secured, it will customise a block for student accommodation. He observes that the students are at present housed mainly in shophouses in the vicinity.

“When we mention we are doing a development in Perlis, we received a lot of reservations. We are not going in blindly,” says Azizan, who hails from Sungai Petani, Kedah.

He also says the group is planning to build serviced apartments and retail lots on a 0.9ha plot in Bayan Lepas, Penang.

TH Properties also has the on-going Pesisiran Residences in Bukit Pelindung, Pahang which is sited close to the Telok Cempedak beach and Kuantan town.

On the 2.8ha project, Azizan says: “Sales have been a bit slow due to the current market conditions but we are pushing hard for it.”

Located in an elite residential area, the site is also near to schools and an international school. The housing scheme is expected to be ready in November. Launched last October, only seven of its 38 double-storey semi-detached units have been sold to-date.

They come in two sizes with those measuring 40x85ft having a built-up of 2,717 sq ft and the 50x 85ft units having a built-up of 3,497 sq ft. Priced at RM1.7 mil to RM1.8 mil, the houses are developed by its wholly-owned subsidiary, THP Pelindung Sdn Bhd.

Parked under this freehold project, which is under construction, are also two double-storey bungalows tagged from RM2.7 mil to almost RM3 mil, which are still available for sale.

Rising revenue

A check with online portals show the asking price for an existing bungalow of 7,365 sq ft in Bukit Pelindung with six rooms and four bathrooms in the subsale market is only RM1.1 mil. Understandably, it will not be easy for THP Pelindung to push for the sale of its two bungalows.

For the financial year ended Dec 31 last year, TH Properties reported a 14% increase in revenue to RM471.9 mil but its profit before zakat and tax fell 22% to RM73.7 mil.

Azizan is nevertheless upbeat about the company’s outlook. “From an ailing company, we have become a medium-sized one. Our profit has also quadrupled.”

Azizan, who is also chairman of Eastern & Oriental Bhd (E&O), is unabashed to admit he tries to incorporate all the good things in E&O in terms of design and planning into TH Properties as the group intends to do more than just sell houses.

“We want to sell lifestyle as well,” he says. Thus, the provision of jogging and cycling tracks as well as more greens, for instance, in its signature Bandar Enstek in Negeri Sembilan.

Azizan, who was previously Lembaga Tabung Haji’s investment panel chairman, says TH Properties is still open to the idea of having a hospital established in Bandar Enstek and was in discussions with an Indian group that specialises in mid-range hospitals.

While talks about developing retirement homes have been on-going for this township, he voices his concerns whether such a project can be sustainable.

Citing Selesa Hillhomes in Bukit Tinggi, Pahang, he says this project which was started many years ago by another developer, had the concept but was way ahead of its time.

Successful overseas foray

TH Properties Sdn Bhd, which made its foray into property development in Australia, also has a 70:30 joint venture with Eastern & Oriental Bhd (E&O) in the Esca House project in London.

Its chairman Datuk Azizan Abd Rahman, who is also E&O’s chairman, says the listed company had initially wanted to sell this London property along Palace Court, near Kensington Palace and Hyde Park.

Instead, TH Properties obtained the property through a tender exercise in which E&O held a smaller share.

In Australia, Azizan says the group’s projects are all sited in New South Wales’ capital city, Sydney. Bay Pavilions, its first shariah-compliant project which comprises 273 apartments and was jointly developed with Australian property investment group Piety, was a sell-out.

“The Imperial in Hurstville, comprising 227 serviced apartments and two retail lots and with a total GDV (gross development value) of about A$196.3 mil (RM671.21 mil), is almost sold with a 97% take-up rate,” he says. Launched in November 2014, handing over of vacant possession is scheduled for March next year.

“Our third project, One The Waterfront in Wentworth Point, which is under construction, is 70% sold. Phase one, comprising 423 apartments, was launched in November 2015. The overall GDV for this project is estimated at A$504.5 mil. Besides the local (Australian) buyers, we also have overseas buyers from China,” he says.

“We have three more projects in North Strathfield, Lidcombe and View Rockdale. We are in the midst of obtaining the necessary approvals for the project in North Strathfield, which comprises 154 apartments. The total GDV for this project is estimated at A$110.5 mil.” The Kee Lidcombe project in Lidcombe, a suburb in Sydney west, comprises 135 apartments and six retail units on the ground floor.

Launched last October, Azizan says 102 of the apartments have been sold so far. Developed by THP Piety, the project’s estimated GDV is A$68.07 mil.

On View Rockdale, comprising 92 apartments and four retail units on the ground floor, he says it is in the development approval submission stage. Sixty-two per cent of the units were taken up during the soft launch. 

This article first appeared in Focus Malaysia Issue 244.