KUALA LUMPUR, April 25 — It could be a timely move for the Employees Provident Fund (EPF) if they plan to dispose of another retail asset in the Klang Valley to cash out and book the gains from their investment, said an economist.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the EPF has always been prudent in their investment activities as guided by their internal control — the Investment Committee and Investment Panel — and governance along with the Strategic Asset Allocation (SAA).
“Judging from the prevailing market condition, hypermarkets may have reached their maturity stage whereby there have been many players in the market.
“Additionally, competition from the small players, which have located their business premises relatively near to the residential properties, could pose a serious challenge to the hypermarket space,” he told Bernama.
Mohd Afzanizam said the challenge is always about reinvesting the proceeds and creating more value for its members.
“Perhaps going into a different segment within the commercial property sector, such as warehousing and data centres, could be some of the options for EPF.
“At the end of the day, EPF has to keep abreast with the latest development in the investment landscape and make a timely move to seize the right investment opportunity,” he added.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the decision to dispose of the retail asset is a good strategy if the price is right.
“But then, we still do not know the purchase price. The EPF has not given any details,” he said.
Yesterday, there was a news report saying that the EPF is in the process of selling another retail asset in the Klang Valley.
However, the EPF has not yet made any statement on this matter.
Last month, it sold a portfolio of six retail assets in the Klang Valley and Johor, worth a combined RM520 million, to the Sunway Real Estate Investment Trust.
