#Exclusive* Takaful Ikhlas allocates RM100 mil to RM150 mil to acquire commercial buildings

PETALING JAYA: Takaful Ikhlas Sdn Bhd, a wholly-owned subsidiary of MNRB Holdings Bhd has allocated between RM100 million and RM150 million to acquire more commercial buildings within the Klang Valley this year.  

Its president and chief executive officer Datuk Syed Moheeb Syed Kamarulzaman said the company would fund the acquisitions depending on the availability of funds from its Shareholder Fund, General Risk Fund or Family Fund.

“We will definitely look at the possibility of acquiring new buildings, however, it depends on the availability of investment funds which is capped within our guidelines,” Syed Moheeb told recently.

Syed Moheeb added that the new buildings would be leased for rental income, and held for capital appreciation.

Takaful Ikhlas plans to make property at least a fifth of its investment portfolio for its financial year ending March 31, 2011.

The third largest Islamic insurer in the country had recently embarked on its first property investment when it paid RM87 million for its new corporate office Ikhlas Point in Bangsar South, Kuala Lumpur.  

Takaful Ikhlas acquired the building which includes two office blocks, using funds from contributions paid by policyholders. The insurer has about 1.3 million policyholders to date.

The acquistion was done through the company’s Family Fund which was given the approval by the operator’s investment committee in July 2008.

The company also paid out another RM10 million to renovate the property which has a built-up area of 99,286 sq ft.

The two office blocks have 10 floors each. Takaful Ikhlas took up all 10 floors in Tower A and another three floors in Tower B. The other seven floors in Tower B are rented out.

The company also plans to house its exisiting 10 branches nationwide in their own buildings within the next five years.

Takaful Ikhlas’ total asset base currently stand at more than RM1.2 billion of which 60% comes under its Family Fund, while the balance under its Shareholder Fund and General Risk Fund.

Takaful Ikhlas' investment portfolio currently includes properties, equity, bonds, unit trust and money market investments.
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