RM1.3bil London deal will yield good returns, says Tabung Haji

 

Tabung Haji has bought Great Minster, a six-storey building in central London, which is occupied by the UK transport ministry on a long-term lease. (Twitter pic)

KUALA LUMPUR: Lembaga Tabung Haji expects good returns from its purchase of a six-storey building in London, the pilgrim fund’s group managing director and CEO Amrin Awaluddin said.

He said the purchase was Tabung Haji’s sixth investment in Britain and is expected to provide returns of an estimated 5% every year.

The property would be refinanced through a subsidiary to reduce the cash outlay, he said.

Amrin said the building,located in a strategic area in the middle of London, was on a freehold and had been leased by the UK transport ministry for over 11 years.

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The purchase came with a long-term lease that could not be cancelled, and a rent that increased yearly.

“The value of the property is expected to continue to rise due to the annual increase in rent, its strategic location where demand exceeds supply for high-profile assets in London.

”TH also does not have to pay for the building maintenance cost as all of it is borne fully by the tenant, the UK transport ministry,” he said.

The building, known as Great Minster, is located at 33 Horseferry Road in Victoria, central London, occupying 179,869 square metres.

It was purchased below market value, he said. The price of £247.5 million (around RM1.3 billion) was below the current market value of £250 million based on two independent valuations. - FMT