KUALA LUMPUR (Nov 16): The Employees Provident Fund (EPF) has set aside a provision of RM24 million following an accounting adjustment at its Battersea joint venture (JV) firm.
The Ministry of Finance (MOF) said the provision was attributed to EPF’s 20% stake in the JV firm Battersea Project Holding Company Ltd (BPHCL).
BPHCL has, in the quarter ending June 2024, allocated RM120 million in provisions for the rental agreements, based on the International Financial Reporting Standard 17 (IFRS 17) accounting standard, which came into effect in January 2023.
With EPF’s 20% stake in the JV, the MOF said the provident fund’s portion of this provision is RM24 million.
BPHCL owns the London’s Battersea Power Station (BPS) property project — a major redevelopment initiative in the UK launched in 2022; and a Malaysian JV between EPF and two other companies — S P Setia Bhd (KL:SPSETIA) and Sime Darby Property Bhd (KL:SIMEPROP), each holding a 40% stake.
“As of the end of June 2024, the joint venture has set aside RM120 million under the IFRS 17, which took effect in January 2023,” stated the MOF in a written parliamentary reply to Aminolhuda Hassan (Pakatan Harapan-Sri Gading) on Tuesday (Nov 5).
Aminolhuda inquired about the impact on EPF, due to the losses incurred from the Battersea project’s investment.
The MOF said this accounting provision includes the rental guarantee for 50 Electric Boulevard (Phase 3B), an office building recently completed but not fully rented.
It said the total IFRS 17 provision is expected to decrease over time, as the occupancy rate at 50 Electric Boulevard increases.
MOF said that BPS, in which EPF holds a 35% stake, has fully leased its office space, with tech giant Apple as the main tenant.
Meanwhile, retail occupancy currently stands at 95%, reflecting solid progress.
“As of the end of 2023, Battersea Power Station recorded 12 million visitors,” the ministry noted.
Source: TheEdge - 7 Nov 2024
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SPSETIACreated by edgeinvest | Dec 06, 2024
Created by edgeinvest | Dec 06, 2024
Created by edgeinvest | Dec 06, 2024
Created by edgeinvest | Dec 06, 2024
Created by edgeinvest | Dec 06, 2024
Created by edgeinvest | Dec 06, 2024
Created by edgeinvest | Dec 06, 2024