ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business deals

Malaysia's EPF invests $70m in Australian health care real estate

Pension fund taps new markets to weather global uncertainties

Commercial properties line the western side of Sydney's central business district.   © Reuters

CEBU, Philippines -- Malaysia's $200-billion pension fund Employees Provident Fund is investing $100 million Australian dollars ($70 million) in an Australian health care real estate fund managed by real estate developer Dexus.

In a statement, the developer said EPF's investment in Healthcare Wholesale Property Fund will enable it to acquire North Shore Health Hub, Stage 1 of the development at St. Leonards, currently held in Dexus' trading portfolio. The health care facility is due for completion in late 2020.

The plan is to eventually expand the precinct to include a "medi-hotel," build-to-rent housing and other amenities that will increase its end value to AU$1 billion.

"We are pleased to welcome EPF Malaysia onto our funds management platform, which enables the continued growth of HWPF, Australia's high-quality health care wholesale property fund," said Deborah Coakley, Executive General Manager, Funds Management, Dexus.

Launched in 2017, HWPF is Australia's first institutional, wholesale, open-ended health care property fund that allows investors to participate in an asset class with long-term potential. Its portfolio includes approximately AU$370 million of properties -- on completion value -- and a weighted average lease expiry of 27.4 years.

EPF's investment in HWPF comes as the Malaysian pension fund announced in February that it will tap new markets and work with other fund managers to weather the effects of global uncertainties.

EPF recorded a gross investment income of 50.88 billion ringgit ($12.48 billion) in 2018, where equity contributed 58%. The fund has about 222.61 billion ringgit worth of investments across 40 countries and 28 currencies, representing about 26.7% of EPF's total portfolio.

EPF's last investment in Australia was in 2017, when it bought a 49% stake in OSK Holdings Bhd's Australian project Yarra Park City for $115.9 million. It was also the first overseas property investment by the Malaysian pension fund that year.

OSK's Yarra Park City holds the rights to a five-acre, mixed-use development Melbourne Square in Southbank, Melbourne and has a gross development value of over $2.1 billion.

DealStreetAsia is a financial news site based in Singapore that focuses on corporate investment activity in Southeast Asia and India. Nikkei recently announced the acquisition of a majority stake in the company.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media