TABUNG Haji bought a RM1.3 billion commercial building in London is to expand its commercial portfolio in the United Kingdom, the pilgrims fund board said.

The building, known as Great Minster, at 33, Horseferry Road, Victoria, was purchased for £247.5 million (RM1.3 billion) from Singapore-listed property firm Sinar Mas Land on July 12. The acquisition was filed with the Singapore Exchange.

TH CEO Amrin Awaluddin said the property would yield long-term returns by way of rent and maintenance fees, which would increase by the year.

“It is also in line with TH’s investment objectives – to diversify the types of investments in terms of assets and locations,” Amrin said in a statement.

The 179,869sq m building is located at one of the biggest business districts at the West End, he said.

It is also home to numerous government offices and close to the UK parliament building with great connectivity to public transport, he said.

TH paid approximately £1,370psf for the freehold building.

The offices are fully leased to the British Secretary of State for Transport until 2033.

“TH is prudent in its investments to ensure that the returns can cover the cost of the annual haj and distribution annual profit,” said Amrin.

He said 11% of TH funds, or RM88 billion, are allocated to investment in overseas properties.

“TH is currently actively exploring opportunities to increase investment in the real estate sector abroad in an effort to diversify its investment portfolio because it is the best measure to earn competitive and consistent returns for 8.5 million of our depositors.”

TH’s other London holdings included an office building at 151, Buckingham Palace Road, which was sold to a consortium of private investors led by Hong Kong’s Gaw Capital Partners in 2015. – July 21, 2022.