At the launch of the TH Foundation today, Najib said the land bought by TH at a value of RM1,800 per sq ft over a year ago was now worth RM2,200 per sq ft.

“When TH bought the land, it became an issue.”

However, Najib said TH was now receiving offers to the tune of RM2,200 per sq ft and this meant it was a profitable venture.

“The problem is that the purchase was politicised by some parties.”

TH Group Managing Director and Group CEO Johan Abdullah said TH decided not to sell the land as it believed the investment had long-term operational uses.

“From the start, the land purchase was done based on commercial procedures.”

He said TH evaluated the land from a business perspective before deciding to invest in it.

“Our investments are all long-term investments and not short-term investments.”

Last year, TH’s purchase of the land came under fire from Opposition politicians and netizens who saw the purchase as a bailout for 1MDB which owns TRX.

Meanwhile, Johan declined to comment on claims made by PKR lawmaker Rafizi Ramli that TH Heavy Engineering Berhad (THHE) was facing the risk of losing RM554 million.

He said THHE, which is partly owned by TH, will make an announcement soon and urged for patience.

Yesterday, Rafizi alleged that Najib awarded contracts worth RM740 million in direct negotiations to THHE.

Rafizi called the alleged awarding of the contracts by Najib as an attempt to bail out the engineering company, which he said was close to bankruptcy.

“I have repeatedly questioned Tabung Haji’s investments in THHE because the latter has continuously experienced financial difficulties, with many falling victim to THHE (formerly known as Ramunia Holdings Berhad),” Rafizi said in a statement yesterday.

Related story: ‘RM740m direct contracts to bail out TH subsidiary’