The Retirement Fund Incorporated (KWAP) today confirmed that it is eyeing land in the Tun Razak Exchange zone owned by 1Malaysia Development Berhad, but stressed any decision would be based on commercial considerations.

"KWAP reviews the investment opportunity in TRX as it would with any other property investments and the decision to review the project was commercially driven based on its prime strategic location as the next Kuala Lumpur financial district," it said in an email to Malaysiakini.

However, it said KWAP has yet to make any final investment commitment in TRX.

"At this point, no final investment decision has been made on the project," it said.

In a second statement sent later tonight, KWAP said it has not signed any deals on the TRX land.

"KWAP today confirms that no investment commitment has been made on TRX," it said.

It added that any investment decision it undertakes will be based on a set minimum criteria.

"All investments would have to meet KWAP's minimum investment returns and risk parameters as governed by its board.

"KWAP continues to look at domestic property investments that meet the fund’s mandate of delivering sustainable returns over the long term," it said.

Precarious buy

Yesterday, The Star reported that KWAP was planning to buy land in TRX at RM2,300 per square foot to build its new headquarters.

This is after Lembaga Tabung Haji paid RM188.5 million for 1.56 acres of the 70-acre TRX land owned by 1MDB.

1MDB had purchased the entire 70 acres from the government for a mere RM194.1 million.

This translates to a purchase of RM2,773 per square foot by Tabung Haji, compared to 1MDB which bought the land for only RM64 per square foot from the government.

It is unclear what is the size of the TRX land KWAP is eyeing but at RM2,300, it would be slightly cheaper than what Tabung Haji paid.

However, if the purchase goes ahead, it will likely have political implications as 1MDB has been plagued by controversies.

The Tabung Haji purchase sparked public outrage as it was seen as a bailout of cash-strapped 1MDB, which is facing a RM42 billion debt.

Following the controversy, Tabung Haji said it will sell the land.

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