GERMAN FORAY
THE Employees Provident Fund has expanded its foreign real estate portfolio with the acquisition of three logistics facilities in Germany. The deals were conducted via Kwasa Goodman Germany, a joint venture between the pension fund and German real estate
THE Employees Provident Fund (EPF) has expanded its foreign real estate portfolio with the acquisition of three logistics facilities in Germany for an undisclosed sum.
The acquisitions were undertaken by Kwasa Goodman Germany, a joint venture between the pension fund and German integrated real estate firm Goodman Group.
DekaBank, one of Germany’s leading banks, said it had granted funding worth €117.3 million (RM558.21 million) to Kwasa Goodman.
DekaBank property financing head Amar Latif said the funding reflected its ability to issue a large loan amount to established firms to buy premium properties in Germany.
“We are looking to develop our relationship with Goodman in Germany and expect to negotiate further on such transactions in the market,” he said.
The bank said the deal involved the acquisition of a modern logistics property in Ergolding, Bavaria, which would be rented to BMW until 2032.
The other two logistics facilities are located in Marl, North Rhine-Westphalia, and will be leased to Metro Group over the long term. With the two facilities, Metro will now have the largest logistics space in Europe at 235,000 square metres.
It is understood that EPF is pursuing real estate investment expansion in Europe to maximise returns.
Apart from owning several luxury buildings in London, EPF reportedly purchased two logistics assets in the Netherlands in September last year for between RM476.27 million and RM501.34 million.
EPF’s investment targets also include properties in Poland, where it reportedly bought shopping mall Galeria Katowicka in March.