Foreign Property Fund Plans To Invest RM500m In Malaysia
KUALA LUMPUR: Injaz Mena Investment Co PSC, an Abu Dhabi merchant bank, and AsiaEquity Partners Pte Ltd, a Singapore-based fund manager, plan to invest up to RM500mil in commercial properties in Malaysia.
Injaz AsiaEquity Property Fund 1, an offshore real estate fund jointly launched by the parties, will undertake such investments.
AsiaEquity managing director Yusof Wahid said the fund, formed last July, had raised US$100mil in equity capital, with the main subscribers from the Gulf and Far East regions.
“We look for investments that offer above average returns. We are focusing on Singapore and Malaysia before revising our strategy to go into China and Vietnam,” he told a press conference yesterday.
He added that investors could expect returns of 15% per annum. The fund will invest in commercial offices, retail properties, residential areas and business parks.
Although it is not strictly syariah-compliant, investment in hotels and properties with activities related to gambling, sale of liquor and entertainment would be excluded.
“We want to exercise flexibility in the way we finance our transaction and in accepting rental income accruing from leases to banks and financial institutions.
“Besides, syariah structures and compliance will make it difficult to execute our investment plans expeditiously in places like Vietnam, China and Hong Kong,” he said.
The fund will invest in properties that present growth opportunities through refurbishment and repositioning in key urban centres in Asia.
A second fund is in the pipeline.
Injaz Mena director Mubarak Fahad said AsiaEquity Partners had spent six months to study opportunities here. “This includes reviewing potential collaborations with Malaysian investment groups and institutions. We hope to make significant acquisitions over the next three months,” he said.
Yusof said the fund would not invest less than US$5mil per deal. In Malaysia, it was scouting for deals worth above RM100mil, he said.
The fund had allocated 30% limit for Malaysia, based on the risk profile for the market, said Mubarak. It has been in discussions to invest in the asset-backed securitisation of Kenanga International building.
Source :The Star 02/03/2007 Close Window