TH, which recently purchased the building, said the addition of the new property to its portfolio would strengthen its real estate investments and generate stable, long-term returns.
Group managing director and CEO of the pilgrimage fund Amrin Awaluddin said the building came with a long-term rental contract while the maintenance cost is fully borne by the tenants.
He said there also was a provision for an annual increase in the rental rate, and that the market value of the property is stable.
“This is in line with TH’s objective to diversify its investment in terms of assets and locations,” he added.
In a statement issued today, the group announced that it had finalised the negotiations to purchase the building in London on July 12, 2022.
Amrin said the six-storey building with a floor space of 179,869 sq m is known as Great Minster at 33 Horseferry Road, Victoria, and is sited in a strategic location amidst the biggest business district in West End, London, currently an expanding commercial hub.
Victoria is also where many government and public sector offices are located due to its close proximity to the Parliament building, and accessibility to major public transportation including underground train stations at Pimlico, Westminster and Victoria, apart from other main transportation networks.
“London is still an attractive financial hub with a lot of business opportunities currently and in the long-term, hence, this is encouraging for the property sector,” Amrin said.
TH allocates about 11% of its RM88 billion funds for investments in property locally and abroad.
However, Amrin said, in line with its prudent property investment strategy, TH only seeks properties capable of generating immediate returns to cover the cost of the annual Haj pilgrimage and profit distribution.
The fund must also seek investments that provide stable and safe long-term returns for the continuity of the fund and its depositors.
“TH is aggressively exploring opportunities to increase its investments in the property sector overseas in efforts to diversify its investment portfolio as this has been identified as the best move to generate competitive and consistent returns for its 8.5 million depositors,” he added.