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Malaysian retirement fund buys third UK property for US$298 million

Publication Date : 25-06-2014


Malaysia's Retirement Fund Incorporated (KWAP) has bought a controlling stake in its third UK property for 961.4 million ringgit (US$298 million), bringing the number of properties in its portfolio to seven.

The retirement fund said in a statement yesterday that it had sealed a joint venture with Intu Properties plc for the purchase of an 80 per cent interest in the intu Uxbridge shopping centre.

The three-floor, 440,000 sq ft retail complex in West London was officially opened in February 2001.

Intu, a British retail-based real estate investment trust, retains a 20 per cent stake and will continue to manage the freehold property on behalf of the joint venture.

The shopping centre, which has a net lettable area of 42,041 sq m and 71 stores, cafes and restaurants, counts major UK chains like Debenhams, Odeon Cinema, H&M, Next, TopShop, Boots and BHS as major tenants.

This is KWAP’s third property investment in the United Kingdom after acquiring 10 Gresham Street in October 2012 and 88 Wood Street in April last year for 200 million pounds ($339.5 million) and 215 million pounds ($365 million), respectively. It now owns and co-owns seven properties, including four in Australia.

Chief executive officer Wan Kamaruzaman Wan Ahmad said the retirement fund had to date invested 5 billion ringgit ($1.55 billion) into international properties.

According to a statement on Intu Properties’ website dated June 5 announcing the sale, KWAP had bought Intu Uxbridge at a 2 per cent premium to its end-2013 valuation of 214 million pounds ($363.3 million) for a 100 per cent stake.

Intu Uxbridge, in Zone 6 of Greater London, attracted around 12 million visits each year, the company said.

Uxbridge is one of London’s major metropolitan centres, situated 15 miles from Charing Cross near the M25 London orbital motorway and close to Heathrow airport.

It is a significant retail, leisure and commercial centre with 40,000 office workers, including the European headquarters of a number of global blue chip companies like Apple, Coca Cola, Cadbury and Xerox, according to Intu.

Intu owns or part-owns about 16 shopping centres in the United Kingdom with over 21 million sq ft. Its shares are traded on the London and Johannesburg stock exchanges.


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