EPF eyes more foreign assets
The Employees Provident Fund (EPF) will spend another £400 million to £500 million (RM1.9 billion to RM2.5 billion) to buy more properties in London and Australia in the next two years, its top executive says.
EPF, Malaysia's largest pension fund, has to date spent STG1 billion (RM4.9 billion) on seven buildings in London alone, chief executive officer Tan Sri Azlan Zainol said.
This is in line with the EPF's plans to invest about 20 per cent of its funds in international assets, Azlan said, adding that the fund is now working on sealing a major acquisition in the city.
"We are also looking at investment opportunities in other parts of Europe, but we are more comfortable in the UK because its laws are similar to Malaysia's.
"Australia also has a similar legal structure to us," Azlan told Malaysian journalists during a visit to the Battersea Power Station site here recently.
EPF owns a 20 per cent stake in the three-member Malaysian joint venture that is redeveloping the city's iconic power station on a 15.6ha plot into a new town centre.The other consortium members are Sime Darby Bhd and SP Setia Bhd.
EPF's seven property assets in London include commercial building Whitefriars which it bought from Union Investment for STG148 million (RM736 million) in March last year, One Sheldon Square in Paddington Central, 40 Portman Square near Oxford Street and an office block in St James's Square where one of the tenants has one of London's highest rents.
Azlan said EPF's investments in Australia comprise three properties - one was a direct acquisition while the other two were through investment in funds.
Since the early 2000s, individual Asian investors have invaded the London property market, and these include high net worth Malaysian individuals. Later, foreign sovereign wealth funds and pension funds including EPF, entered the market and have become Central London's largest foreign buyers since 2009.
"We have been investing overseas over the last two to three years. So far, we have invested 12 per cent of the approved 20 per cent funds already. We're looking for good buildings and returns in the UK and Australia," he said.
On its investments in the Battersea project, Azlan said EPF is a "passive" investor and leaves it to partners Sime Darby and SP Setia to drive the project.
The Battersea redevelopment is expected to span about 15 years involving a few phases with a gross development value of STG8 billion (RM39.8 billion).
"In any property development project, we expect beyond 10 per cent per annum," he said, when asked on the expected returns from the riverside redevelopment.
"I would like to see this project completed in nine to 10 years," Azlan added.
This is in line with the EPF's plans to invest about 20 per cent of its funds in international assets, Azlan said, adding that the fund is now working on sealing a major acquisition in the city.
"We are also looking at investment opportunities in other parts of Europe, but we are more comfortable in the UK because its laws are similar to Malaysia's.
"Australia also has a similar legal structure to us," Azlan told Malaysian journalists during a visit to the Battersea Power Station site here recently.
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EPF's seven property assets in London include commercial building Whitefriars which it bought from Union Investment for STG148 million (RM736 million) in March last year, One Sheldon Square in Paddington Central, 40 Portman Square near Oxford Street and an office block in St James's Square where one of the tenants has one of London's highest rents.
Azlan said EPF's investments in Australia comprise three properties - one was a direct acquisition while the other two were through investment in funds.
Since the early 2000s, individual Asian investors have invaded the London property market, and these include high net worth Malaysian individuals. Later, foreign sovereign wealth funds and pension funds including EPF, entered the market and have become Central London's largest foreign buyers since 2009.
"We have been investing overseas over the last two to three years. So far, we have invested 12 per cent of the approved 20 per cent funds already. We're looking for good buildings and returns in the UK and Australia," he said.
On its investments in the Battersea project, Azlan said EPF is a "passive" investor and leaves it to partners Sime Darby and SP Setia to drive the project.
The Battersea redevelopment is expected to span about 15 years involving a few phases with a gross development value of STG8 billion (RM39.8 billion).
"In any property development project, we expect beyond 10 per cent per annum," he said, when asked on the expected returns from the riverside redevelopment.
"I would like to see this project completed in nine to 10 years," Azlan added.
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