On 29 April 2024, Keppel completed the acquisition of an initial 50% stake in PERE’s top-ranked European real estate firm, Aermont Capital S.à r.l. (Aermont), marking a pivotal step in Keppel’s transformation into a global asset manager and operator.

With the inclusion of Aermont, Keppel has established a strong foothold in Europe, expanding its presence and offerings beyond the Asia Pacific, as well as its blue-chip clientele.

Keppel’s Funds under Management1 (FUM) grew to about S$80 billion, from S$55 billion as at end-December 2023, representing about 80% of the Company’s S$100 billion FUM target by end-2026.

From left to right: Ms Christina Tan, CEO, Fund Management and CIO of Keppel; Mr Léon Bressler, Chairman of Aermont Capital; Mr Loh Chin Hua, CEO of Keppel; and Mr Paul Golding, Managing Partner of Aermont Capital.

Mr Loh Chin Hua, CEO of Keppel, said, “Aermont Capital runs an established and highly successful asset management platform in Europe, raising the most capital among European real estate funds in the last five years, despite the COVID-19 pandemic. The acquisition of an initial 50% stake in Aermont, with a pathway to an eventual 100% ownership and full integration, marks a major strategic step forward in Keppel’s ambition to be a global asset manager and operator, availing us of a highly attractive European platform with strong recurring fees and a premium network of global Limited Partners (LPs).”

Mr Léon Bressler, Chairman of Aermont Capital, said, “We are looking forward to building a close partnership between Keppel and Aermont. Keppel offers something specific and compelling to our franchise; its technical and operating expertise are well-aligned to key megatrends such as the energy transition, digital transformation and urbanisation. For Aermont, access to that expertise will help us better capitalise on a number of technology-driven opportunities. It will also open the door to new fund strategies, enabling us to eventually offer more to our LPs and to broaden the professional opportunity to our team.”

Established in 2007, Aermont is an independent asset management business focused on real estate and real estate-related investment activities in Europe. It is a leader in opportunistic real estate investments with a proactive operator-oriented approach emphasising prime assets and leading businesses across core Western European markets.

Aermont has four active funds and a single asset vehicle. Its investments have included assets and businesses in the office, student accommodation, workforce housing, luxury hospitality and production studio infrastructure sectors, among others. Aermont has generated an average realised 25% gross internal rate of return and 2.8x gross multiple on invested capital as at November 2023.

Aermont’s geographic footprint and investment strategies complement Keppel’s capabilities with minimal overlaps. The acquisition has also expanded Keppel’s blue-chip clientele through Aermont’s longstanding relationships with over 50 global LPs, including public pension funds, sovereign wealth funds and endowments and foundations from Europe, North America, Asia and the Middle East, the majority of whom are new to Keppel.

Mr Loh said, “Both our companies share very similar operating cultures and values. As asset managers, neither of us are pure financial investors. Aermont’s emphasis on value adding and active management, as well as its operator-oriented approach are a strong fit with Keppel. Furthermore, we believe that the senior team at Aermont, with their extensive track record and networks in Europe, would add significant value to Keppel as we work together to co-create new fund products for global LPs.”

Moving forward, Keppel will focus on maintaining and supporting the success of Aermont’s real estate platform while working with Aermont’s team to jointly develop new fund products and initiatives, leveraging Keppel’s expertise in alternative assets such as private credit funds and data centres.

Aermont, with additional value add from Keppel, has the potential to further grow its FUM by up to 2.5x to approximately S$60 billion by 2030 through the co-creation of European credit funds, data centre funds and various private investment vehicles.

Keppel expects to proceed in 2028 to acquire the remaining 50% stake in Aermont subject to identified regulatory approvals.