YEAR 2010

Posted November 29th, 2010 in Media Release 2010
Pelaburan Hartanah Berhad introduces a Shariah-compliant real estate-backed unit trust fund

Kuala Lumpur, 29 November 2010 – Pelaburan Hartanah Berhad (PHB), a subsidiary of Yayasan Amanah Hartanah Bumiputera (YAHB) today launched its Amanah Hartanah Bumiputera (AHB) investment fund, which will enable Bumiputera investors to participate in the beneficial ownership of real estate assets with a minimum entry investment of RM500.

AHB has secured from PHB strategic investments in the beneficial ownership of prime commercial properties in the Klang Valley with the specific condition that income derived from these property investments are also in compliance with Shariah principles.

The fund which was first announced by the Prime Minister during the Budget 2011, aims to provide investors with a regular and consistent income stream, and will be available exclusively through Maybank branches nationwide from today onwards.

YAB Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak, Prime Minister of Malaysia, who is also the Chairman of YAHB, said that over the past 3 years PHB has been pursuing selective acquisitions of completed properties, undertaking construction and accumulating land banks for developments. To-date PHB has assembled a stock of tenanted and revenue generating properties and it is now ready to implement its goal of distributing “ownership entitlements” to Bumiputera investors.

IThe Prime Minister also shared that the primary challenge facing YAHB is to achieve the widest Bumiputera participation and at the same time to ensure retention of ownership in Bumiputera hands. YAHB believes that AHB is an ideal solution in that, while the AHB units give absolute beneficial rights to investors, maintaining the legal rights to the properties in PHB, will meet the retention objectives of YAHB.

The Prime Minister also noted that he was pleased that AHB would open doors to Bumiputera investors to be a part of a commercial property investment via an investment scheme, which has traditionally been seen as prohibitive due to its high upfront capital.

“I hope that this initiative introduced by PHB will receive the rightful support from the Malaysian Bumiputeras, which will in turn contribute to the overall balance of the country’s economy. Further, the Shariah compliant nature of the fund will indirectly widen the Islamic banking instruments in Malaysia, in line with the government’s ambition to turn Malaysia into a global Islamic financial hub.” he said during the launch of the fund at the Sime Darby Convention Centre.

En. Kamalul Arifin Othman, Managing Director and Chief Executive Officer of PHB explained that AHB was crafted following screening criteria provided by AHB’s Shariah Advisers, to ensure that the lease income derived from the real estate assets are in compliance with Shariah principles.

“AHB will focus primarily on investments in beneficial ownership of real estate which provide stable income producing and yield-accretive real estate. The competitive returns, low minimum entry point, Shariah compliant and accessibility through Maybank branches nationwide are just some of the benefits that we are able to offer our investors”, he said.

The units of AHB are transacted at a fixed price of RM1.00 per unit, with an approved fund size of 1 billion units. The investment is open to Malaysian Bumiputera above 3 months of age, with a proviso that investors below the age of 18 will require a Malaysian legal guardian signatory.