Malaysia's Provident Fund To Offer USD 130M Worth of Assets For Raising Funds

The Employees Provident Fund (EPF), Malaysia's largest state pension fund, is looking to sell local education assets worth more than $115 million, according to two sources familiar with the situation.

According to the sources, EPF, which has total assets of 1.01 trillion ringgit, is looking to sell assets held by its Malaysian education real estate investment trust, Alpha REIT, which it is winding up.

According to the sources, a sale could occur as early as the first quarter of this year.

Alpha REIT is Malaysia's first Islamic REIT with an educational focus. According to its website, its assets include Sri KDU schools, The International School ParkCity, and Eaton International School, all of which are located in Malaysia's capital city of Kuala Lumpur and the country's richest state of Selangor.

According to the sources, the sale is expected to attract bidders such as regional private equity firms and education providers.

The unlisted Alpha REIT's sole unit holder is EPF.

In response to a question on Friday, EPF said it confirms the winding up of Alpha REIT as part of a yearly portfolio rebalancing exercise for EPF.