Saturday, February 24, 2024

TH strengthens its investment in UK property

investment in UK property

The property is a government office building housing the UK’s Department for Transport

Lembaga Tabung Haji (TH) has strengthened its investment in the real estate market after finalising the negotiations to purchase a building in London on July 12, 2022.

TH group managing director and chief executive officer, Datuk Seri Amrin Awaluddin, said the purchase of the freehold building was in addition to TH’s property investment portfolio in the UK since 2012.

The property is a government office building housing the UK’s Department for Transport.

The ownership of this property will give good returns to TH in the long term, considering its long-term rental contract while maintenance cost is fully borne by the tenants, with increasing annual rental rate and stable market value, he said.

This is also in line with TH’s investment objective to diversify the types of investment in terms of assets and locations, he said in a statement on Thursday.

Amrin said the six-storey office building spanning 179,869 square metres is known as Great Minster at 33 Horseferry Road, Victoria, sited in a strategic location amid the biggest business district in West End, London, and is a commercial hub that is currently expanding rapidly.

Victoria also houses many government and public sector offices due to its proximity to the Parliament building and its easy accessibility to major public transportation including underground train stations in Pimlico, Westminster, and Victoria, as well as other main transportation networks.

London is still an attractive financial hub with a lot of business opportunities currently and in the long term, hence, this is encouraging for the property sector, he said.

Nevertheless, at the same time, he said TH is always cautious about making any property investment to ensure it generates immediate returns to cover the cost of the annual Haj pilgrimage and profit distribution, besides providing a long-term return that is stable and safe for the continuity of the fund and its depositors.

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