EPF plans to sell assets

KUALA LUMPUR (Feb 6): The Employees Provident Fund (EPF) “has identified at least seven assets” with a total estimated value of RM350 million to RM450 million to be put up for sale, sources told the Edge Malaysia.

The weekly reported that “at least three of the assets are office buildings the provident fund is currently occupying” with two office buildings in Kuala Lumpur — Bangunan KWSP in Jalan Raja Laut and Bangunan KWSP in Changkat Raja Chulan, and Bangunan KWSP Damansara Fairways in Petaling Jaya, Selangor.

The other assets up for sale are Marina Vista Suite Hotel Block B within Avillion Admiral Cove in Port Dickson, Negeri Sembilan, a retail property in Section 18, Shah Alam, Selangor, which was previously tenanted by a Giant hypermarket, and two assets in Kangar, Perlis, and Alor Setar, Kedah.

The EPF told the business publication that it is “always in the process of acquiring as well as disposing of assets, which include real estate”.

 “These operations are regulated through the fund’s robust governance structure, and all investment decisions are based on its strategic asset allocation framework, which optimises returns within tolerable risk limits. In addition to being an inflation hedge, the fund’s real estate assets have delivered competitive risk adjusted returns over a medium to long-term horizon,” said EPF.

“Any sale of assets will be based on the latest independent valuation, and any offer received will be tabled to the management for their further consideration and approval. The decision to buy or sell real estate will also take into consideration the fund’s overall portfolio strategy and the long-term health of the fund,” it added.

ExaStrata Solutions Sdn Bhd CEO and chief real estate consultant Adzman Shah Mohd Ariffin explained that EPF has been planning to sell the assets in its portfolio since March last year “to raise funds to balance the lower contributions due to the reduction in the statutory contribution rate for employees in 2021, as well as to pay out upcoming dividends for its members”.

“The disposal of properties during the current market situation will be challenging but not impossible as there are parties who are looking for good deals,” Adzman told The Edge.

Read the full report in this week’s The Edge Malaysia

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