A friend mentioned to me that our Employees Provident Fund (EPF) has just purchased Sports Direct. I said, nope I do not think EPF will buy a retail chain and I hope they do not because it’s extremely competitive these days. This was what EPF’s chairman said recently. Zeti: Diversification is Vital (click to read) . Anyway, upon checking, EPF really did not enter the retail biz. EPF actually bought the logistics property of Sports Direct International plc in the UK for £120 million (RM562 million). For EPF, long term rental income will be more appropriate (plus potential capital appreciation). For Sports Direct, the purchase will give them funds which they could use anyway they want.
Article in malaysianreserve.com After purchasing the property, Sports Direct International will continue to lease the space from EPF for the next 15 years. EPF said, “The investment is an opportunity for EPF to generate an assured income stream that match our risk-return profile. In line with EPF’s investment policies, comprehensive due diligence and robust governance standards were followed in completing the purchase of the logistics asset.” Bloomberg reported billionaire Mike Ashley, who owns the British sportswear retailer, was selling the property, including a warehouse complex and distribution centre to KWAA Logix Sportivo Ltd, which is reportedly owned by EPF. Sports Direct is a British retailing group, founded in 1982, and listed on the London Stock Exchange. The group currently owns 530 retail stores worldwide. Article in malaysianreserve.com
In case you do not know who is Mike Ashley, he is also the owner of Newcastle United Football Club. (NUFC). They were placed 13th last season in the Premier League and may be potentially sold to a new owner. Here’s that news. According to Forbes, Mike Ashley’s net worth is estimated to be US$2.9 billion (RM12.15 billion). Always note that how EPF invests will not be similar to how somehow looking for faster capital appreciation will invest. One is looking for continuous returns because that’s where our yearly returns come from. Most of us, especially the younger ones may be more tempted to all the Facebook advertisements promising quick returns from property and usually we do not even needed to pay a single cent to start ‘investing.’ Well… Happy following.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
<Featured Image is courtesy of Stock Photos from fizkes >
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