KUALA LUMPUR: Lembaga Tabung Haji (TH) has sold its Tun Razak Exchange (TRX) land back to the government at a premium, said group managing director and chief executive officer Datuk Seri Zukri Samat.
The TRX land was included in the 28 properties and lands TH had transferred to special purpose vehicle Urusharat Jamaah Sdn Bhd, which is owned by the government.
Of the 28 properties and land, 18 has zero income and mainly vacant lands.
“These assets are not liquid and no in line with our new liquidity framework,” Zukri said at a media briefing on the progress of TH’s turnaround plan here today.
The 1.6 acre TRX land was acquired by TH in 2015 from debt-ridden 1Malaysia Development Bhd (1MDB) for RM188.5 million.
TH’s property arm, TH Property Sdn Bhd, was supposed to develop the property into a high-rise residential tower on the TRX land.
The proposed development by TH on TRX land would encompass a mix of apartment and serviced apartments, and other commercial developments with a gross development value of an estimated RM900 million.
Under the transfer of under-performing assets to the SPV under the Ministry of Finance, Zukri said RM19.9 billion of assets were identified to be transferred in exchange for RM10 billion of sukuk with a yield of five per cent and the RM9.9 billion in Islamic redeemable convertible preference shares (RCPS-i).
“This exchange will give TH fixed income assets, which will stabilise TH’s balance sheet and rectify the asset or liability mismatch,” he said.
However, Zukri said both sukuk and RCPS-i was not guaranteed by the government.