Lacking the capacity to develop the two projects on its own, Retirement Fund Inc (KWAP) said it will only invest in Bandar Malaysia and the Tun Razak Exchange (TRX) if there is a viable partner, reported Free Malaysia Today.
“We can’t do it alone. We have to look into opportunities to have a viable partner,” said KWAP chief executive officer Wan Kamaruzaman Wan Ahmad at the launch of the fund’s new headquarters in Kuala Lumpur.
Moreover, KWAP will only invest in the two projects following sufficient studies.
It was previously reported that the fund had agreed to acquire land within TRX, with KWAP expected to pay between RM1 billion and RM1.2 billion for a 40-storey tower and land.
Meanwhile, Kamaruzaman revealed that KWAP is waiting for the ringgit to become stronger before deciding on any overseas investment.
KWAP reportedly plans to invest in the European property market and the US equity markets in a bid to diversity its assets, which stands at RM129.2 billion as at December 2016.
With properties in Australia and the United Kingdom, the fund currently invests 88.4 percent of its assets locally and the remaining 11.6 percent overseas. It targets to raise its overseas investment to 19 percent by 2020.
Notably, 51.8 percent of KWAP’s investment is allocated in fixed income, 37.9 percent in equity, five percent in alternative investments, like private equity and property, and five percent in cash.
Image sourced from FMT
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email firstname.lastname@example.org