Malaysian investment funds are selling off their prime property in London in what London's Financial Times noted was a sign of 'growing financial woes' at home.

“It’s no secret that Malaysian funds [...] are having to repatriate money. We’ve definitely seen a trend of them selling,” Richard Divall, head of cross-border capital markets at real estate advisers Colliers, was quoted as saying.

“But they got into London very, very early (after the financial crisis) so they are making huge profits.”

This was also in line with the Malaysian government’s call for more local investments to spur an economy hit by plunging oil prices.

The FT reported that Retirement Fund Incorporated (KWAP) was in the midst of selling its 18-storey City of London office building which it bought in 2013 for 215 million pounds.

This is a second sale of a plum London property by KWAP, having raised 210 million pounds through the sale of One Sheldon Square in Paddington, which it co-owned with the EPF, FT reported.

EPF is also trying to sell its Fleet Street property purchased in 2011 at 148 million pounds.

Last October, Lembaga Tabung Haji sold an office building at Buckingham Palace Road for about 250 million pounds – 22 percent more than what it paid two years earlier.

The trend is raising concern over the future of the Battersea power station project which os owned by a Malaysian consortium comprising SP Setia, SP Setia Bhd, Sime Darby Bhd and EPF.

The project involves the construction of hundreds of luxury apartments, many of which are now listed for resale ahead of completion, the financial daily reported.

The apartments were also marketed to Malaysian buyers and the plunging ringgit is pushing some investors to look for an exit, it reported.