LONDON: The Employees Provident Fund (EPF) is considering to dispose of one of its properties in the United Kingdom (UK), namely the Reading International Business Park.
Chief Executive Officer Datuk Shahril Ridza Ridzuan said on Thursday the fund has been constantly receiving offers for its assets in the country.
At this point in time, it really depends on whether we have the right offer and right pricing that we think makes it worthwhile to dispose of an asset,” he said.
Shahril Ridza was speaking at a media conference on the sidelines of the Global Private Equity Summit 2015 here today.
Also present were EPF Chairman Tan Sri Shamsudin Osman and Deputy Chief Executive Officer (Investment) Mohamad Nasir Ab Latif.
Shahril Ridza said this when asked on the status of the Reading International Business Park.
Reading International Business Park was developed in 2001 by the Arlington Business Parks Partnership Fund (ABPP).
EPF, through Deutsche Asset and Wealth Management, bought the property for 140 million in 2011 from ABPP. It is let in its entirety to Verizon on two separate leases with six years to expiry.
According to a news report, the EPF has made an offer of 150 million for the luxury property.
Quoting industry sources, the fund is working with Deutche Asset and Wealth Management for the disposal and has appointed an agent, DTZ, to sell Reading International Business Park.
The sources also said the EPF would potentially raise more than RM250 million, capitalising on the rising real estate prices and foreign exchange if the deal is closed in the near term.
As of June 2015, EPF’s global investments made up 25 per cent of total investment assets and contributed more than 40 per cent to the funds total cumulative year-to-date income.
Apart from the UK, the EPF also invests in other overseas property markets such as France and Germany.
Shahril Ridza also said the fund was on track to give out a dividend of 2.5 per cent plus inflation this year.
“It will still depend on the performance of third and fourth quarters. Given where the market has moved since the middle of the year, I think we would be cautious about making any predictions for the year.
