EPF has made its maiden investment foray into Japanese properties, becoming the first public pension fund in Asia to invest there, taking advantage of the weaker yen.
The Nikkei Asian Review reported that EPF spent about ¥14 billion (RM427 million) to acquire five logistics facilities owned by trading house Mitsubishi Corp. in Tokorozawa, Saitama Prefecture, and Funabashi, Chiba Prefecture.
It added that Mitsubishi subsidiary Diamond Realty Management will manage the properties.
“While the facilities are around 20 years old and as such command lower rents than new properties, demand is still brisk due to their favourable locations,” the portal reported.
“Yields on the properties are expected to come to around 10%, higher than the average for privately placed REITs.”
It said EPF plans to acquire similar properties in the Tokyo area and major regional cities, building its portfolio to around ¥50 billion within two years.