KUALA LUMPUR: Lembaga Tabung Haji (TH)’s financial health has been restored after completing its restructuring plan in May this year by transferring underperforming assets to Syarikat Urusharta Jemaah Sdn Bhd (Urusharta Jemaah).
Urusharta Jemaah is a special purpose vehicle (SPV) fully owned by the government.
TH, as quoted in New Straits Times, said, all the assets transferred to the SPV, including a plot of land in the Tun Razak Exchange (TRX), were either assets whose current value was below the investment cost or assets which did not generate a profit or gave only low returns to TH.
It said, the company needed to invest a substantial amount for asset development such as for a luxury residential project or a commercial complex which were seen as unsuitable for the current market and risky for the depositor’s fund.
TH added that it had the right of first refusal to regain its assets from Urusharta Jemaah if the assets meet the needs of TH’s business strategy and add value to its depositors which can be seen in the issuance of sukuk worth RM19.9 billion by Urusharta Jamaah which had also given TH returns of four per cent or about RM800 million a year.
Meanwhile, TH said it continues to play an active role in the country’s economy including through its portfolio of investment properties via its subsidiaries.
Source: New Straits Times