KWAP is reportedly buying property 1MDB in Tun Razak Exchange

KWAP reportedly purchased land in Tun Razak 1MDB Exchange at a price of RM1 billion to RM1.2 billion

KUALA LUMPUR: Retirement Fund (KWAP) is said to have made a deal to buy a piece of land and buildings that will serve as its new headquarters at the Tun Razak Exchange (TRX) at a price 15 percent lower than what is paid by the Fund Board pilgrimage (TH) to 1Malaysia Development Berhad (1MDB), The Star reported today.

Citing sources, the newspaper reported KWAP has agreed to pay between RM1 billion to RM1.2 billion for a 40 storey building and a plot of land for a price that was paid RM2,300 per square foot.

TH previously paid to 1MDB RM2,774 per square foot or RM188.5 million, to 0.64 acres of land located at TRX.

"The main agreement is a prelude to the sale and purchase agreement (S & P). Terms of the deal too tight where KWAP will only pay 10 percent in advance and the rest when the building is ready," The Star quoted an undisclosed source as saying.

READ: TH taxable profit selling 30 percent of TRX - Property Lawyers

In its report, the newspaper stated rationale KWAP bought the building as its headquarters is now rented d Menara Yayasan Tun Razak held by Yayasan Tun Razak and the Employees Provident Fund (EPF).

"KWAP want to be in an area where there is market, mainly it will be the center of Islamic finance," the source said.

The source told, S & P agreement has yet been signed, the terms of the agreement to purchase the building and the land it would be better than an agreement made between 1MDB and TH.

"KWAP will pay a deposit of 10 per cent and the money will be put into an escrow account," said one source.

The source also said that the new building KWAP would be contrary to the station Mass Rapid Transit (MRT) subway to be built at TRX.

The station said the biggest MRT Sungai Buloh-Kajang which is under construction.

Last week, the decision to buy a plot of land of TH 1MDB The TRX has shocked many groups, including former Prime Minister, Tun Dr Mahathir Mohamad and UMNO Youth.

There are those who claim to act TH purchase of land of 0.64 hectares was because she wanted to save 1MDB burdened with heavy debts.

However, on Saturday, Chairman of TH Datuk Seri Abdul Azeez Abdul Rahim told TH will sell the land purchased at a price of RM188.5 million.