KWAP buys two UK student accommodations for £39.75m

KUALA LUMPUR: Retirement Fund Inc (KWAP) has bought two properties in the United Kingdom from IP Investment Management (HK) Ltd and Maven Capital Partners for £39.75 million (about RM280 million).

KWAP said the properties are two purpose-built student accommodations, namely 800 Bristol Road in Birmingham, which was acquired for £14.62 million, and the Mill House in Edinburgh, which was purchased for £25.13 million.

The acquisitions bring the total number of properties owned and co-owned by KWAP to 14.

It said the estimated average net yield of the properties is 5.08 per cent.

“We are very pleased to add the two properties to our growing portfolio in the UK market as the acquisitions align with KWAP’s aspirations to increase its international property exposure.

“We will continue to grow our presence in foreign markets without compromising on our risk appetite, in line with our mission to serve the pensioners of Malaysia,” said chief executive officer Datuk Wan Kamaruzaman Wan Ahmad.

KWAP said with the acquisitions, the fund’s current strategic asset allocation comprised 40 per cent fixed income, 45 equity equity and 15 per cent alternative investments.

Property investments accounted for nine per cent of the allocation for alternative investments, followed by private equity at four per cent and infrastructure at two per cent.

As of December 31 2017, 75 per cent of KWAP’s property investments were foreign properties while the remaining 25 per cent were in the local market.

KWAP said 800 Bristol Road in Birmingham is situated in Selly Oak and within walking distance from the University of Birmingham.

Surrounding universities include Birmingham City University, Aston University and University College of Birmingham.

Completed in 2016, the fourstorey freehold building provides 103 studio accommodations for students, in addition to a cinema room, function room, gym, study rooms, laundrette, secure bike storage and 11 car parks.

The Mill House is situated within Edinburgh Education Corridor that is home to four universities, including University of Edinburgh, Heriot-Watt University, Edinburgh Napier University and Queen Margaret University.

KWAP also has properties in Australia and Germany.

We will continue to grow our presence in foreign markets without compromising on our risk appetite, in line with our mission to serve the pensioners of Malaysia.

KWAP chief executive officer