SYDNEY: TH Properties Sdn Bhd, the property development arm of state-owned pilgrims fund Tabung Haji, is strengthening its presence in Australia with the completion of Bay Pavilions, its first project overseas.
The project, funded via a A$96 million (RM299 million) Islamic term financing provided by Maybank Islamic, marks the first syariah-compliant financing facility structured for a property project in Australia.
“Bay Pavilions represents a landmark moment for TH Properties on two fronts, being our maiden overseas property development and also the first fully syariah-compliant development in Australia,” said Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom, who officiated at the event, here, yesterday.
“This is, of course, not without its challenges but we are lucky to have the backing of Maybank Islamic as well our Sydney-based developer and asset manager Piety Group, which is also syariah-compliant.”
The development, comprising 273 apartment units, were fully taken up yesterday.
It was completed by Piety THP, a 50:50 joint venture between TH Properties and Piety Group.
It also signified TH Properties’s efforts to grow and diversify, and support Tabung Haji’s strategy to enhance its investment portfolio.
“This investment promises to be the first of many projects as we ramp up our capital investment and property development business in Australia, a market that we are confident presents great value,” said TH Properties chairman Datuk Azizan Abdul Rahman.
In the pipeline between now and 2019 are three more developments.
They are the A$200 million mixed-use Imperial Hurstville, launched in November last year and has a 96 per cent take-up rate as of last month, a mixed-use development in Wentworth Point called One on the Waterfront and the proposed high-rise apartment comprising 154 units in North Strathfield.
Malayan Banking Bhd (Maybank) group will also provide A$100 million financing for the development of Imperial Hurstville.
All four projects hold a collective gross development value of A$800 million.
Meanwhile, National Australia Bank Ltd associate director of Islamic capital markets Dr Imran Lum said he was pleased with the potential of the project.
“We hope that Bay Pavilions will translate the value and potential of Islamic finance for corporates, especially in the development and infrastructure sectors in Australia,” he told Business Times.
“There’s so much potential to be gained here for Islamic finance and we hope we can continue to share our knowledge with Malaysia and pave the way in Australia.”
The luxury Bay Pavilions is located at North Shore, about 9km from the Sydney Central Business District.
The apartments are spread across five blocks with prices starting from A$515,000.