UNLOCKING THE VALUE OF WAKAF LAND
UDA Holdings Bhd (UDA), an agency under the purview of the Entrepreneur Development Ministry, is working together with religious councils to help unlock the value of wakaf land.
Wakaf is a voluntary charitable endowment in the form of cash, property or land, for syariahcompliant causes.
Due to its complex nature, wakaf land is difficult to develop but UDA has taken up the challenge several times already; this latest project will be its fourth.
At the ground-breaking ceremony held at the site in Bandar Seberang Perai, Penang, yesterday, UDA CEO Mohd Salem Kailany said the project is called Wakaf Seetee Aisah 2.
“The development of wakaf land will improve the socioeconomics of Muslims by providing opportunities for them to participate in and benefit from economic development activities within a syariahcompliant framework,” he said.
The mixed development project, which has a gross development value (GDV) of RM210mil, will occupy a 7.32 acre (about 3ha) plot.
It is sited next to UDA’s first wakaf land project, Wakaf Seetee Aisaf, and will comprise two components: the residential Taman Wakaf Seetee Aisah 2 and the commercial Wakaf Seetee Aisah 2 Business Centre.
The project will be developed in three phases, with 150 apartment units in phase one, a 40-storey condominium tower housing 422 units in phase two and the business centre in phase three.
The condominium units will have identical built-up areas of 1,100sq feet (102sq m) and will be priced from RM350,000.
The commercial component will house 35 units of four-storey shoplots, a seven-storey office block, a stand-alone surau and a multi-purpose hall.
Officiating at yesterday’s event were Minister in the Prime Minister’s Office Datuk Seri Mujahid Yusof Rawa, Penang Deputy Chief Minister Datuk Ahmad Zakiyuddin Abdul Rahman, and Penang State Religious Council president Datuk Abdul Malik Abul Kassim.
Many of the wakaf land parcels are undeveloped, according to Abdul Malik.
He revealed that Penang has a total of 1,260 acres (509ha) but only 40% of the land is located strategically enough to be developed. The remaining 60% is more difficult to develop and is suitable for other projects like mosques, he said.
“So far, about 10% of the 40% has been developed,” he added.
At a press conference held after the ground-breaking ceremony, Mujahid said wakaf land has three major challenges.
“The first is location,” he said, pointing out that, while land is not lacking due to the generosity of individuals, the location of the land might not be suitable for developments that could help raise the socioeconomic levels of Muslims in those areas.
“The second is cost. We have the land but the cost of building [is another matter],” he said, adding that the third is the research needed to see if the value of the wakaf land can be increased before a development is undertaken.
Working with developers like UDA would help speed up the development of wakaf land, he said.
Wakaf Seetee Aisah 2 will be developed by UDA’s wholly-owned subsidiary UDA Land North Sdn Bhd together with the Penang State Religious Council.
Under the agreement with UDA, the council will receive RM24mil worth of assets comprising 150 apartment units, 12 condominium units, nine shoplots, one office unit, the surau and multi-purpose hall.
“In addition, we recently sealed an agreement with Bank Muamalat Malaysia Bhd to jointly develop wakaf land based on the musyarakah (collaboration) concept where both parties share profits, losses and risks,” Mohd Salem said.
Apart from the nearby Wakaf Seetee Aisaf project (GDV RM24.09mil), the other UDA wakaf land projects are Wakaf Mohamed Hashim (GDV RM15.34mil), also in Penang, and Tanah Wakaf Telok Chengai (GDV RM106.8mil) in Kedah.