Malaysian SWF closes Unilever HQ buy in the UK

Lembaga Tabung Haji, the Malaysian Hajj pilgrims fund board, has partnered with Shariah compliant investment bank Gatehouse Bank to acquire Unilever’s UK and Ireland headquarters office in the UK.

The transaction price comes to £76 mln (€92 mln), reflecting a net initial yield of 6.18%.

Gatehouse acted as investment and shariah adviser for the deal, which marks Tabung Haji’s third investment into the UK real estate market and is a key part of its wider global investment strategy.

Lembaga Tabung Haji’s first UK asset acquisition was 10 Queens Street Place in November 2012, also advised by Gatehouse Bank.

Let entirely to Unilever, Unilever House is a modern freehold building in Leatherhead, Surrey comprising 176,650 sq ft (16,400 m2) of high-quality office accommodation arranged over ground and two upper floors. Unilever has also invested in the building’s upkeep having recently funded a car parking extension for its employees by extending their lease and increasing the rent passing per annum.

The UK continues to remain a preferred real estate investment haven among Malaysian sovereign investors, given its status as one of the most mature and established property markets globally. To date, Malaysian pension and retirement funds have invested more than £4 bn in the UK real estate market.

'The opening of the office in Kuala Lumpur has enabled Gatehouse Bank to ensure that its high levels of client and customer service are extended in Southeast Asia. The bank is particularly unusual in that it provides a "one stop shop" comprehensive and bespoke service for institutions, sovereign wealth and family office interests who are diversifying their real estate sectoral exposures or entering markets like the UK or USA for the first time,' commented Richard Thomas, senior advisor to the board of Gatehouse Bank.

Other than Gatehouse Bank, Lembaga Tabung Haji was mainly advised by Trowers and Hamlin and Zaid Ibrahim and Co on the deal.