LEMBAGA Tabung Haji will build a RM150 million commercial building for the Federal Territory’s Islamic Religious Council (MAIWP), under a wakaf land development project.
Group managing director and chief executive officer Ismee Ismail said the project will be financed with internal funds. He expects between 7 and 8 per cent returns on investment by the end of the concession period.
During the 25 years, revenue from rental will go to Tabung Haji, which, in turn, will have to pay RM56 million to MAIWP.
With Bank Islam Malaysia taking up 30 floors of the 34-storey building, he was optimistic of seeing full occupancy for the building, scheduled to be completed in 2010.
“The rental of the building will be based on market rate of RM4.90 per sq ft. The rate will be revised from time to time,” he told reporters after a Press conference in Kuala Lumpur, yesterday.
The property is located on 0.484ha of land in Jalan Perak, Kuala Lumpur – in the heart of the city’s Golden Triangle area.
The move is seen as an initiative in response to the Government’s call to develop and commercialise empty and abandoned wakaf land – land donated for religious or charitable purposes.
In addition, the synergy between Tabung Haji and MAIWP would also see Islamic funds being used for asset development in the country.
Prime Minister Datuk Seri Abdullah Ahmad Badawi is scheduled to perform the ground breaking ceremony for the project on June 8.
Meanwhile, MAIWP director Datuk Che Mat Che Ali pointed out that Federal Territory currently has RM34 million worth of wakaf land in the area.
He said the council will continue to look at ways to utilise the unused land so that it will be able to benefit the Muslim community.
“The land space of wakaf land in Federal Territory is small and not all of them can be used for commercial purposes. We will see how we can utilise the land,” he added.