Malaysia's EPF to sell more than $115 mln in education assets - sources
13/01/2023 10:39
By Yantoultra Ngui
SINGAPORE, Jan 13 (Reuters) - Malaysia's largest state
pension fund, the Employees Provident Fund (EPF), is looking to
sell local education assets worth more than 500 million ringgit
($115 million), two sources with knowledge of the matter told
Reuters.
EPF, which is also one of the world's biggest pension funds
with total assets of 1.01 trillion ringgit, is looking to sell
assets held by its Malaysian education real estate investment
trust, Alpha REIT, which it is winding up, the sources added.
A sale could come as early as the first quarter of this
year, the sources said, declining to be named as they are not
authorized to speak to the media.
Alpha REIT is Malaysia's first Islamic REIT with a mandate
to focus on education. Its assets are Sri KDU schools, The
International School @ ParkCity and Eaton International School
situated in Malaysia's capital city of Kuala Lumpur and its
richest state of Selangor, according to its website.
The sale is expected to attract suitors, including regional
private equity firms and education providers, the sources added.
EPF is the sole unit holder of the unlisted Alpha REIT.
In response to Reuters' query on Friday, EPF said it
confirms the winding up of Alpha REIT as part of a regular
portfolio rebalancing exercise for EPF that is carried out on a
yearly basis.
"The actual date for the launch of sale, however, will be
determined and conducted by Alpha REIT," it added.
Alpha REIT said in an emailed response to Reuters on Friday
that "EPF had undertaken the decision to sell the education
assets under Alpha REIT on its own will and sole discretion."
"Since its inception in 2017, Alpha REIT has successfully
grown to deliver market leading total returns and yield in
excess of 6% in FY2021 (ended Dec. 31)," it added.
The planned sale comes at a time when rising interest rates
globally are denting the appeal of REITs over fears that returns
will be affected negatively.
($1 = 4.3340 ringgit)
(Reporting by Yantoultra Ngui; Editing by Kane Wu and Sharon
Singleton)
((Yantoultra.Ngui@thomsonreuters.com;))