Malaysia’s second largest pension fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has acquired a 41-storey office building CAP Square Tower in Kuala Lumpur for reportedly $121.1 million, the biggest real estate deal for Malaysia this year.
The pension fund which has been already investing in real estate locally and overseas, bought the office building from Germany-based investment company Union Investment Real Estate GMBH (UIRE).
KWAP has neither announced formally, nor has it listed the acquisition on its website among its portfolio of properties. However, JLL Malaysia that advised the German firm on the sale has recently confirmed the acquisition, terming it the biggest real estate deal of this year in Malaysia.
In fact, the cost of the acquisition was quoted as $121.1 million by financial valuation and advising firm Duff & Phelps in a report recently.
The office building called Menara AIA Cap Square is a 41-storey Grade A office building which has 601,796 square feet of lettable space. The building houses tenants such as insurance firm AIA and Citibank.
This acquisition is the second high value deal by KWAP in Kuala Lumpur after it bought a 39-storey office block Integra Tower for about $315 million last year.
KWAP has an objective to invest in strategic assets for steady income with growth on rents and capital values in order to achieve commendable returns that contribute well to KWAP’s overall goals. Its investments in domestic and foreign markets are diversified in terms of locations, types, sectors and sizes.
It also has real estate assets in Australia and UK.