EPF looking to dispose of Port Dickson hotel?

The Employees Provident Fund (EPF), is in the midst of seeking a buyer for its property in Avillion Admiral Cove in Port Dickson, Negeri Sembilan. Marina Vista Suite Hotel Block B may fetch as much as RM50 million, reports The Edge, citing a source.

This would mark the EPF's third hotel sale since 2014.

When contacted by the publication, the retirement savings fund did not confirm, nor deny the rumour. 

"Buying and selling any investment is part of EPF's investment process - to realise gain or rebalance our portfolio," it said in an email response. 

The EPF is said to have asked real estate agents to look for a buyer, and has not hired an exclusive marketing agent. Potential investors have reportedly already been sent an information memorandum (IM), which provides details of the asset.

An IM that was prepared by Zerin Properties, Marina Vista, is an en-bloc strata building that houses 160 rooms, with a net lettable area of 73,529 sq ft, and still has 79 years left on its lease.

The indicative price of the asset listed on the documents is RM50 million. Zerin Properties CEO Previndran Singhe did not comment when contacted, citing confidentiality.

Avillion Admiral Cove, located on 100 acres along the seafront, adjoins the Admiral Marina and Leisure Club. 

According to the project developer Reliance Pacific's (Now Avillion Bhd) 2009 annual report, Marina Vista had been sold en-bloc to an institutional investor, along with a management contract with Avillion Hotel International. 

In 2010, its annual report stated that it had embarked on the Marina Vista project in its financial year 2008/09, with construction that was fast-tracked and completed ahead of schedule in March 2010. 

By these indications, the asset is 8/12 years old. 

The EPF is also understood to be be considering the sale of a Grade A office block, the Axiata Tower in Kuala Lumpur Sentral. The Edge reported in May that the EPF had asked for local and foreign real estate consultants to submit a request for proposal, for the planned sale. 

The value of the 30-storey building was estimated to be RM530 million at the time. 

The EPF is said to have purchased the building in 2011 for RM428 million.

EPF would not comment on the status of the sale, but sources say that it has yet to dispose of Axiata Tower, which enjoys an occupancy rate of over 90%. 

In its 2017 annual report, the EPF states the fair value of assets held for sale as at the date of statements of financial position is RM637.99 million. 

The assets in question include 38 properties occupied by CIMB Group Holdings Bhd, a piece of land in PEtra Jaya in Sarawak, and the EPF's investment in associate Columbia Asia Sdn Bhd. 

The process of sales is expected to be completed this year.