Malaysia’s Employees Provident Fund Board (Kumpulan Wang Simpanan Pekerja) has entered a joint venture with Goodman Group to develop domestic logistics assets.

The new venture will invest up to MYR1.4bn (€343m). The agreement is EPF’s third tie-up with Goodman, having invested in Australia in 2012 and Germany in 2013.

EPF said the joint venture was ”good for Malaysia”.

As at 31 December 2014, real estate and infrastructure made up of 3% of EPF’s total investment assets and contributed MYR1.39bn in investment income, an increase of 22.3% from 2013.

Last week, Invesco Real Estate bought a Paris office building for an Asian state pension fund, understood to be EPF.

The deal was the investment manager’s third in Europe for the separate account mandate.

EPF deputy chief executive investment officer, Encik Mohamad Nasir Ab Latif, said its commitment to Malaysia was part of its diversification programme to invest in inflation-linked assets.

”These asset classes were effective inflation hedging tools, befitting the fund’s long-term objectives as a retirement fund, and the EPF will continue to explore opportunities in real estate, infrastructure and natural resources in accordance with its strategic asset allocation.”

Philip Pearce, executive director Goodman Group, said the joint venture will selectively and strategically pursue development opportunities that will create ”long-term value for combined stakeholders”.