Khazanah takes up space at London tower, says report

KUALA LUMPUR (Oct 9): Malaysia's sovereign wealth fund Khazanah Nasional Bhd will take up space in The Shard development in London's south bank, the London Evening Standard reported.

Khazanah is said to be among ten tenants in the building, the tallest in west Europe, which has secured 90% occupancy for its office space.

Rental rates at the skyscraper are as high as £90 (RM579) per square foot per year, according to the Financial Times which reported in August that financial IT firm Leonteq had signed up as a tenant for the 26th floor at that price, said to be a new record in rental rates for that part of London.

The Shard, at 310 metres with 87 storeys, is in Southwark and forms part of the London Bridge Quarter development.

It cost £1.2 billion (RM7.7 billion) to build, according to an article in The Independent in January last year.

The Standard's report said "the arrival of the Malaysians, who had RM145.5 billion (£23 billion) of assets under management last year, will come as a shot in the arm to the property world as the fund looks to diversify its holdings away from Malaysia, China, India, and the US".

Developer Irvine Sellar, who owns The Shard with the Qataris, reportedly said the building, shaped like a pointed shard of glass, will be full by the end of the year.

The Malaysian Insider has asked Khazanah to confirm the Standard's report and is waiting for a response.

Last month, Khazanah announced additional domestic investments of RM6.77 billion to support the government's economic measures to boost investor sentiment. – The Malaysian Insider