Permodalan Nasional Bhd (PNB) announced that it has sold its 90 High Holborn property in London.
In confirming the disposal, PNB chairman Tan Sri Abdul Wahid Omar said the sale was generating good yield for the company, reported New Straits Times.
“When we invest in a property, we tend to invest at an attractive yield. When the market improves, we will be looking at opportunities to exit (the market),” he said after PNB’s 2017 annual report briefing.
“In the case of 90 High Holborn, we have a buyer that is willing to pay an attractive price for the asset. So we have decided to sell that property at a good yield, generating both gains and cash that we can use to invest in Battersea, for example.”
Notably, PNB holds a 40 percent stake in Battersea Power Station development.
“However, we are still in the confidentiality period with the purchaser. Once that is sorted out, we will be able to announce the details. But for all intents and purposes, that transaction has been completed last night (28 March).”
PNB acquired the 90 High Holborn and 1 Silk Street properties in 2012 for £140 million (RM758.7 million) and £350 million (RM1.897 billion), respectively.
Last September, PNB was reportedly looking to sell the two properties, with 1 Silk Street priced at around £400 million (RM2.2 billion).
The 90 High Holborn property, on the other hand, is said to have a market value of £190 million (RM1.03 billion).
Located in Midtown, Central London, the building features office and retail components as well as basement car parks. The fund’s website revealed that it is fully leased to OMD Services Ltd.
With the disposal, PNB now has four remaining assets in London, in addition to 42 domestic properties.
Image sourced from NST Online
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