Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 16): Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has bought the 41-storey Menara AIA Cap Square here from Union Investment Real Estate GmbH (UIRE). The move is seen as a demonstration of Malaysian pension fund KWAP's confidence in the country's office market.

JLL Malaysia, a real estate services provider, said in a statement today the grade A office building along Persiaran Capsquare had 601,796 sq ft of net lettable space. Menara AIA Cap Square's current tenants include AIA and Citibank, according to JLL Malaysia.

UIRE is based in Germany. "JLL Malaysia advised UIRE on the deal, which is the largest office building sale in Malaysia in 2016. This is a high profile property in a desirable location with an enviable occupancy rate and top quality tenants.

"With this purchase, KWAP is demonstrating its confidence in the Kuala Lumpur office market and we expect there will be increased interest in other grade A office properties as a result, from both domestic and international investors," JLL Malaysia managing director YY Lau said in the statement.

According to the statement, KWAP had earlier this year sold its 18-storey London office building in the UK for US$345 million (about RM1.5 billion). JLL Malaysia said KWAP bought the property in 2013 for US$275 million.

Today, JLL Malaysia said KWAP had been looking for investment opportunities in Malaysia since the London property sale.

JLL Malaysia said Menara AIA Cap Square would be KWAP's second property in Kuala Lumpur after the 39-storey Integra Tower along Jalan Tun Razak. JLL Malaysia said KWAP bought Integra Tower for US$315 million (RM1.06 billion) in April 2015.

JLL Malaysia's statement today confirmed The Edge Malaysia business and investment weekly's (Edge Weekly) report in October this year. Edge Weekly, quoting sources, reported that KWAP bought Menara AIA Cap Square from UIRE for RM511 million or RM850 psf.

It was reported then that KWAP and UIRE had already signed the agreement for the transaction which brought KWAP's total real estate investments in the country to RM1.8 billion. It was reported that the transaction was likely to be completed by year end.

 

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