KUALA LUMPUR (Apr 1): Retirement fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP) is allocating 6% and 8% of its fund for investment in domestic and international properties, respectively, said KWAP chief executive officer Wan Kamaruzaman Wan Ahmad.

As at Sept 2014, KWAP's total funds stood at RM107.68 billion.

In a statement today, KWAP said it has completed the acquisition of the Integra Tower for RM1.07 billion, which marks its first property investment in the domestic market.

The latest addition brings the number of property owned and co-owned by KWAP to 10. KWAP has six properties in Australia — two each in Sydney, Melbourne and Brisbane. The other three properties are in London, UK.

Integra Tower, completed in 2012 and located at the intersection of two of the most active commercial spines in Kuala Lumpur — Jalan Ampang and Jalan Tun Razak — is a 39-storey grade-A office building. It forms part of The Intermark, which comprises Vista Tower, double Tree by Hilton and Intermark Mall.

KWAP said the property, which comes with a "green building" status and has a LEED Platinum, was acquired from a private real estate fund managed by BlackRock Inc, the world’s biggest fund house.

“The property, with a net lettable area of 760,715 sq ft and 850 parking bays, is acquired at RM1.07 billion with a yield of 6% to KWAP,” it added.

“KWAP is very happy to acquire Integra Tower that is strategically located in the Golden Triangle of Kuala Lumpur City. The property, which is of a high quality design and finishes, will give a good return to KWAP from its rental income. This is in view of general lack of such quality office accommodation to-date in the vicinity of KLCC,” said Wan Kamaruzaman.