KWAP CEO Wan Kamaruzaman Wan Ahmad said the properties, located in Birmingham and Edinburgh, had an estimated average net yield of 5.08% and were aligned 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 Malaysian pensioners,” he said in a statement today.

He said the properties acquisition was directed by the fund’s strategic asset allocation, which currently stood at 40% fixed income, 45% equity, and 15% alternative investments.

“Property investments comprise 9% of the allocation for alternative investments, followed by private equity at 4% and infrastructure at 2%,” he said.

He said as at Dec 31 last year, foreign properties constituted 75% of KWAP’s property investments while the remaining were in the local market.

The acquisition of both properties brings the total number of properties owned and co-owned by KWAP to 14 with its other international properties in London, Australia and Germany.