KUALA LUMPUR (July 21): Lembaga Tabung Haji (TH) has bought a property, known as Great Minster, situated at 33 Horseferry Road in London that houses the country’s Department of Transport, for £247.5 million (about RM1.32 billion) from Singapore-listed Sinarmas Land Ltd.

TH did not disclose the acquisition price in its press statement.

Sinarmas, the vendor, in its filing with the Singapore Stock Exchange (SGX) dated July 13 announced that the group’s subsidiary SML Victoria Ltd is selling the entire issued share capital of Horseferry Property Ltd, which owns the freehold property, to LTH Property Holdings 3 Ltd, a wholly-owned unit of TH for £247.5 million.

In a statement, TH said the property is expected to generate long-term return due to its long-term rental contract, annual rental reversion, and stable market value, while the maintenance costs are totally borne by the tenant.

The pilgrims' fund said the latest acquisition is in line with its objective to diversify the types of assets and locations of its investments.

TH’s group managing director and chief executive officer Datuk Seri Amrin Awaluddin said the fund will ensure that its property investment could provide immediate returns to sustain annual hajj costs and distributions, while being able to deliver long-term stable and safe returns for the sustainability of TH and its depositors.

TH is actively surveying opportunities to increase its real estate investments abroad in its bid to diversify its investment portfolio as it is deemed to be the best way of obtaining competitive and consistent return for its 8.5 million depositors, he said.

TH allocates about 11% of its RM88 billion fund for property investment domestically and abroad, Amrin added.

This is the first investment deal by TH in five years, and also the first by Amrin, who took office in May 2021.

Pursuant to the sale and purchase agreement, Sinarmas said a cash deposit of 20% was received upon the signing of the agreement, with the balance payable upon completion, which is expected to take place in early August this year.

Sinarmas bought the property for £188.6 million five years ago in June 2017, according to the company’s filing earlier.

Sinarmas is 70.3%-owned by Flambo International Ltd, which also owns 50.6% stake in SGX-listed palm oil giant Golden Agri-Resources Ltd.

Flambo is an investment vehicle controlled by The Widjaja family Master Trust (2), according to annual reports of both Sinarmas and Golden Agri.