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Wednesday, November 24, 2010

EPF looks at expanding property investment

KUALA LUMPUR: The Employees Provident Fund (EPF) will evaluate whether to raise its investment in properties, said deputy chief executive officer (investment) Shahril Ridza Ridzuan.

Shahril Ridza Ridzuan

We will look at it from time to time whether the number that we have invested is the right asset allocation at that point of time, he said on the sidelines of Bursa Malaysia's Business Sustainability Programme yesterday.

Currently, the pension fund has less then 2% of its total accumulated funds invested in properties. However, it has a strategic asset allocation target of 5% for properties.

It (the percentage) will grow over time. As for the timeframe, it depends on the opportunities that arise, Shahril said, adding that it was hard to put a timeframe to the target.

In August, the EPF announced that it would invest 1bil (RM4.88bil) in properties in the United Kingdom.

Meanwhile, Shahril said EPF would wait for the outcome of PLUS Expressway Bhd's shareholders meeting in December before deciding on its next course of action in relation to the proposed acquisition of PLUS' assets and liabilities.

He said it also needed to obtain approval from bondholders and the Government. We have to discuss with the Government on the concession agreement, because any changes will require its approval on the concession as well, he said on EPF's next course of action once it obtained the shareholders' approval.

PLUS has accepted the revised joint offer from EPF and UEM Group Bhd to take over the company's assets and liabilities for RM23bil.

The proposed acquisition involves a cash payout of RM11bil to minority shareholders and RM12bil of the amount owing to Khazanah Nasional Bhd, UEM and EPF.

By The Star

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