GOOD INVESTMENT: Samsudin (centre) and Johari (right) view 26 Boulevard. With them is Chief Executive Officer Putrajaya Holdings Sdn Bhd Azlan Abdul Karim (left)
The Employees Provident Fund (EPF) expects a minimum annual return of RM16 million from the purchase of its latest commercial building in Putrajaya for RM258 million.
EPF signed a sales and purchase agreement with Putrajaya Holdings Sdn Bhd yesterday to buy the 26 Boulevard building in Precinct 3, Putrajaya.
"We expect the income from this building to produce an annual net yield of more than six per cent based on the purchase price," said EPF deputy chief executive officer for investment Johari Abdul Muid at the signing ceremony yesterday in Putrajaya.
EPF expects its income from its real estate investments to grow by 77 per cent to RM150 million this year, said EPF chairman Tan Sri Samsudin Osman during a press conference.
It made an income of RM85 million last year from real estate, 37 per cent higher than RM62 million in 2006.
EPF invested RM1.78 billion in real estate in 2007 or just 0.6 per cent of its total investments. Its portfolio includes properties such as the SOGO shopping mall, Wisma KFC and a building in KL Sentral.
Samsudin said EPF did not have immediate plans to invest in foreign real estate as it wanted to focus on the local market. However, EPF has plans to invest in foreign Islamic bonds. It is now studying its options.
As for 26 Boulevard, more than 90 per cent of the office and retail space in the building has been taken up.
"The occupants include government departments and also those from the private sector," he said.
The tenants include a department from the Ministry of Health, People's Volunteer Corp, Civil Defence Department, NZ Retails Sdn Bhd and a private clinic.
The 26 Boulevard is a low-density 13-storey building with a 0.812ha foot print and 47,890 sq m of gross floor area.
By New Straits Times (by Jeeva Arulampalam)
Posts
No comments:
Post a Comment