SINGAPORE – Keppel secured fresh capital commitments of close to $2 billion across three flagship funds, the Keppel Data Centre Fund III (KDCF III), the Keppel Education Asset Fund II (KEAF II) and the Sustainable Urban Renewal (SUR) strategy.
The capital commitments take Keppel’s funds under management (FUM) to around $4.9 billion.
This includes US$580 million (S$760 million) of initial capital commitments raised at the first close of its third data centre fund KDCF III as well as US$307 million of committed capital raised at the first close of its KEAF II.
It also includes fresh capital commitments of around $760 million raised for its SUR fund, Keppel said on April 21.
Christina Tan, chief executive officer of fund management and chief investment officer at Keppel, said that the recent round of capital secured brings Keppel closer to its interim FUM target of $100 billion by 2026.
The asset manager and operator aims to reach its $200 billion FUM target by 2030, she said.
KDCF III will invest in a portfolio of sustainable data centres across Asia-Pacific and focus on securing pre-commitment or high leasing certainty from hyperscale customers, which mitigates portfolio leasing risks for investors.
Its newly-clinched capital came from various global institutional investors.
KEAF II is part of the Asia-Pacific focused Keppel Education Asset Fund series that focuses on investments in education-related assets and facilities in the region.
The capital commitments KEAF II secured came from a sovereign wealth fund which invested in Keppel Education Asset Fund I alongside commitments from new limited partners from insurance, pension and endowment sectors.
SUR strategy will invest in value-added real estate opportunities with the goal of de-carbonising the built environment while delivering attractive risk-adjusted returns to limited partners, Keppel said.
The newly-secured funds bring the strategy’s cumulative FUM to around S$4.3 million to date and include latest commitments from one of Europe’s largest pension funds.
The SUR fund is pursuing a pipeline of investment opportunities across a range of real estate segments in Singapore, South Korea, Japan, Australia and first-tier cities in China, said the group.
This includes sectors such as commercial, living, life sciences, hospitality and logistics, but excludes education, student accomodation and data centre segments where Keppel has separate fund products.
The developments are not expected to have any material impact on Keppel’s earnings per share or net tangible assets per share for the current fiscal year.
Keppel shares rose 0.65 per cent, or four cents, to $6.23 as at 9.28am on April 21, after the announcement. THE BUSINESS TIMES
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