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SINGAPORE

Malaysian Pension Fund buys Kuala Lumpur’s Menara AIA Cap Square

KWAP acquires prime office building from Germany’s Union Investment


SINGAPORE, 16 DECEMBER 2016 – Malaysia's second largest pension fund Kumpulan Wang Persaraan (KWAP) has bought Kuala Lumpur's Menara AIA Cap Square from Germany's Union Investment Real Estate GmbH (UIRE). JLL Malaysia advised UIRE on the deal, which is the largest office building sale in Malaysia in 2016.

The 41-storey Grade A office building comprises 601,796 square feet of net lettable space. Current tenants include insurance and financial companies such as AIA and Citibank.

"We're delighted with this result for both the buyer and the seller," says YY Lau, Managing Director, JLL Malaysia. "This is a high profile property in a desirable location with an enviable occupancy rate and top quality tenants. With this purchase, KWAP is demonstrating its confidence in the Kuala Lumpur office market and we expect there will be increased interest in other Grade A office properties as a result, from both domestic and international investors."

Earlier this year, KWAP sold its 18-storey office building, 88 Wood Street in the City of London, for US$345 million, which it bought in 2013 for US$275 million. Since then, the fund has been looking for investment opportunities in Malaysia and particularly in the capital.

Menara AIA Cap Square will be the second property KWAP owns in Kuala Lumpur, having purchased the 39-storey office block Integra Tower for RM1.06 billion (US$315 million) in April 2015.

This sale exemplifies that investors believe in Kuala Lumpur's strong fundamentals in the short and medium term as Malaysia's prime office investment location and that it remains competitive on a regional basis for attractive rental growth and returns," says Nick Charlton, Associate Director, JLL Malaysia.

This high profile office deal follows on from the sale of Singapore's Asia Square Tower 1, a world-class commercial development in the city's Marina Bay business and financial district. JLL brokered the sale to Qatar Investment Authority on behalf of seller BlackRock in June 2016.

In 2015, JLL was named number one real estate investment advisory firm in Asia Pacific for the fifth year in a row by Real Capital Analytics (RCA), an independent body that monitors real estate transaction volumes worldwide.


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About JLL

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 70,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $59.1 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

JLL has over 50 years of experience in Asia Pacific, with 34,000 employees operating in 92 offices in 16 countries across the region. The firm won 15 awards at the International Property Awards Asia Pacific in 2016 and was named number one real estate advisor in Asia at the 2015 Euromoney Real Estate Awards. www.ap.jll.com.