Held first closings for Keppel Data Centre Fund III and Keppel Education Asset Fund II and secured new commitment for Sustainable Urban Renewal strategy.

Asset manager and operator Keppel Ltd. (Keppel) has secured close to S$2.0 billion of capital commitments from global institutional investors for its Keppel Data Centre Fund III (KDCF III), Keppel Education Asset Fund II (KEAF II) and Sustainable Urban Renewal (SUR) strategy, representing approximately S$4.9 billion in Funds under Management^[1] (FUM).

Ms Christina Tan, CEO of Fund Management and Chief Investment Officer, Keppel, said, “The securing of about S$2.0 billion in capital across Keppel’s flagship funds reflects the resilient demand for high-quality alternative real assets anchored to macrotrends such as climate change and energy transition, urbanisation as well as rapid digitalisation and the AI wave. This significant milestone brings us closer to our interim FUM target of S$100 billion by 2026, with ambitions to reach S$200 billion by 2030.

“We would like to thank our Limited Partners for their trust and confidence in Keppel as a global asset manager and operator. Notwithstanding the current volatile international environment, Keppel is well-positioned to offer both critical solutions that the world needs, and defensive investment products that can help to steady investors’ portfolios. We are committed to delivering strong returns to our Limited Partners leveraging Keppel’s deep operating capabilities in sustainability and connectivity solutions.”

KDCF III achieves first close of US$580 million

Keppel’s third data centre fund, KDCF III, has achieved its first close, raising approximately US$580 million (S$786 million) in initial capital commitments from various global institutional investors. KDCF III will draw on Keppel’s deep expertise in developing and operating data centres to invest in a portfolio of sustainable, best-in-class data centres in the Asia Pacific region. KDCF III will focus on securing pre-commitment or high leasing certainty from hyperscale customers, which would mitigate portfolio leasing risk for investors.

As part of Keppel’s integrated ecosystem, KDCF III will benefit from synergies across Keppel’s operating divisions, such as the sourcing of renewable energy and advanced cooling infrastructure, which are increasingly important to hyperscalers. KDCF III will also be able to tap on Keppel’s strong customer relationships with hyperscalers to access off-market opportunities, as well as Keppel’s proprietary assets.

KEAF II secures US$307 million in first close

Keppel has achieved the first close of KEAF II with approximately US$307 million (S$413 million) in committed capital. KEAF II has secured capital commitments from a returning sovereign wealth fund invested in KEAF I, as well as commitments from new LPs from the insurance, pension and endowment sectors.

The Keppel Education Asset Fund series focuses on strategic value-add investments in education-related assets and facilities, supporting early learning, K-12, higher education, tertiary education and student accommodation, with a focus on the Asia Pacific region.

SUR strategy secures new capital commitment of S$760 million 

Keppel has raised S$760 million for its SUR strategy, bringing the strategy’s cumulative FUM to approximately S$4.3 billion to date^[2]. This includes the latest commitment from one of Europe’s largest pension funds, underscoring investors’ continued focus on quality sustainable urban renewal assets.

The SUR strategy will invest in value-add real estate opportunities with the goal of decarbonising the built environment, while delivering attractive risk-adjusted returns to LPs. The strategy is currently pursuing a pipeline of investment opportunities across real estate segments^[3] including commercial, living, life sciences, hospitality and logistics in Singapore, South Korea, Japan, Australia and first-tier cities in China.

The above-mentioned developments are not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Ltd. for the current financial year.

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About Keppel

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.

^[1] Gross asset value of investments and uninvested capital commitments on a leveraged basis to project fully invested FUM.

^[2] The FUM of S$4.3 billion includes the latest commitment from a European pension fund and previous funds’ closings.

^[3] Excluding the education, student accommodation and data centre sectors where Keppel has separate fund products.