EPF buys Sport Direct International’s property in UK for RM562m

by SHAHEERA AZNAM SHAH / pic by BLOOMBERG

The Employees Provident Fund (EPF) has acquired the logistics property of Sports Direct International plc in Shirebrook, UK, for £120 million (RM562 million).

In a statement yesterday, the fund stated that the property, currently occupied by the sports equipment retailer, will continue to be leased to Sports Direct International on a long-term basis.

“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,” it noted.

It added that the investment will complement EPF’s UK real property portfolio.

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.

Ashley’s firm will remain as a tenant at the property for 15 years and will continue to operate the distribution centre, offices and retail business.

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.