IN NEED OF CASH? KWAP - EMBROILED IN 1MDB DEALS - SAID TO SELL LONDON OFFICE TO RICH CHINESE FAMILY TO RAISE RM1.56BIL

LONDON - A company controlled by the Shaw Foundation, the philanthropic arm of the late Hong Kong movie mogul Run Run Shaw’s empire, agreed to acquire an office building in London’s main financial district from Malaysia’s second largest pension fund, according to three people familiar with the matter.

The foundation, which is being advised by Knight Frank, will pay Retirement Fund Inc (KWAP) £270mil (RM1.56bil) for 88 Wood Street, according to two of the people, who declined to be named because the deal isn’t completed. Spokesmen for KWAP and Knight Frank declined to comment on the purchase of the property. The Shaw family and foundation did not reply to requests for comment.

Chinese investors, including those from Hong Kong, have been buying office properties in the City of London as a slowing economy and slumping stock market prompt them to diversify their holdings. Office yields for the best buildings in Hong Kong Central are 2% compared with 4 percent in London’s largest financial district, according to broker Savills Plc.

Mona Fong, widow of Shaw Brothers and TVB co-founder Run Run, chairs the foundation which distributes income from the family’s investments to philanthropic causes, according to the foundation’s website. The family’s business empire includes a Hong Kong movie studio and real estate developments in Singapore. Run Run Shaw, who died at 106 in 2014, had credits on 360 films during his career including as co-executive producer on Ridley Scott’s Blade Runner, according to Variety.

KWAP hired Cushman & Wakefield to advise on the sale of 88 Wood Street in response to a government call to repatriate funds to prop up the country’s ailing stock and currency markets. Cushman & Wakefield declined to comment.

- Bloomberg