(Sept 29): Permodalan Nasional Bhd has refuted allegations it is forced to sell two major properties in London, saying it may see lucrative gains at current market prices.

In a statement, PNB said it currently stands to realise more than 20% per annum in terms of internal rate of return due to capital appreciation, effective financing structure and forex gain.

"Any proceeds received from the divestment shall be reinvested for other investments meeting PNB's stringent criteria," the fund manager said.

However any sale is subject to PNB receiving attractive offers, PNB added.

Earlier this week, Sarawak Report alleged PNB is under pressure to sell Milton & Shire Houses and 90 High Holborn in London.

PNB bought both properties in early 2012, partly funded by a borrowing of GBP370 million (about RM2.09 billion), which is at an interest rate of below 2%.

On the sidelines of PNB's third-quarter performance media briefing today, president and group chief executive Datuk Abdul Rahman Ahmad told The Edge that any proceeds would likely be redeployed overseas, given the exchange rate, but no decision has been made.

While the ringgit has appreciated nearly 6% to the US dollar year-to-date, PNB still sees the currency as undervalued relative to its fundamentals.

The possible divestment is being explored as PNB aims to monetise its maturing investments and reinvest the proceeds.

"This is also to take advantage of continuing strong demand for UK properties, despite concerns over Brexit," PNB said.

This demand is "reflected by more than GBP8 billion worth of properties already transacted for the first half of the year of 2017, compared  with GBP13.1 billion for the full year of 2016," the statement added.