We have no commitment in TRX - KWAP

The Retirement Fund Incorporated (KWAP) has confirmed that no investment commitment was made in the Tun Razak Exchange (TRX) development.

KWAP in a statement stated that all investments would have to meet the funds 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 stated.

On Monday, TRAX was said to have signed an agreement to purchase a plot of land and building to be made as its headquarters at the TRX at 15 per cent lower compared to what Lembaga Tabung Haji (TH) to 1Malaysia Development Berhad (1MDB), reported The Star. READ ALSO: KWAP to purchase TRX land at reduced price

The English daily which quoted a source, cited that KWAP had agreed to pay between RM1billion and RM1.2billion to develop a 40-storey building while the land had been tagged at RM2,300-per square feet.

Prior to this, TH had paid 1MBD, an amount of RM2,774 per square feet or RM188.5million for the 0.64-hectare TRX-owned land.

On Tuesday, PKR vice-president Rafizi Ramli said, apart from Lembaga Tabung Haji (TH), Permodalan Nasional Berhad (PNB) was also involved in 'loaning' funds to 1MDB.

He said PNB had bought RM579.2 million worth of sukuk bonds from the government-owned strategic development company. The bonds were issued in February 2014.

He said a report by The Star last year revealed 1MDB had issued RM1.5 billion worth of Islamic bonds to both PNB and TH.