A subsidiary of Malaysia's Lembaga Tabung Haji (LTH) fund, a Shariah-compliant vehicle regulated by the country's central bank, has acquired a UK-government leased office in London for £247.5 mln (€282 mln).
The freehold asset at 33 Horseferry Road London is primarily leased by the UK Department for Transport until 2033.
The five-storey property comprises 180,600 ft2 (16,778 m2), divided between 163,761 ft2 of offices and 16,839 ft2 of ground-floor retail.
The seller is Singapore-listed Sinar Mas Land, controlled by the Indonesia-based Widjaja family. The firm purchased the property for £189 mln in summer 2017.
'The proposed disposal provides an opportunity for the group to realise an attractive rate of return on its investment,' said Sinar Mas in a stock market filing.
The firm remains active in London, having purchased a commercial property in The Strand two months ago from Land Securities for £195 mln.
The LTH fund, which is a prescribed Islamic financial institution, was set up in 1963 to invest money saved by Muslims for pilgrimages to Mecca. It has over 9 million members.
