Singapore-listed Keppel targets $1.5b for two PE funds

Alpha Data Centre Fund, which addresses the growing demand for data centers in Asia, has reached a first close of $130 million, while property-focused vehicle Alpha Asia Macro Trends III has received commitments of $280 million, also in a first close. The two funds look to raise $500 million and $1 billion, respectively, according to a regulatory filing.

The fundraising activity follows the restructuring of Keppel's asset management business under Keppel Capital, which has S$26 billion ($19.1 billion) in assets under management across real estate, infrastructure and data center properties. GPs under the Keppel Capital umbrella include, Keppel REIT Management, Alpha Investment Partners, Keppel Infrastructure Fund, and Keppel DC REIT Management. The two new funds are the responsibility of Alpha.

The Data Centre Fund will collaborate with Keppel Data Centres Holding, a joint venture between Keppel Telecommunications & Transportation and Keppel Land. The aim is to secure a portfolio of greenfield and brownfield assets across key data center hubs in Asia Pacific and Europe. When fully invested, the fund is expected to have projects worth up to $1 billion.

Alpha Asia Macro Trends is designed to leverage the forces driving long-term growth in Asia, such as urbanization, consumerism, tourism, ageing populations and connected cities. Alpha currently manages six real estate funds with total assets of $8.6 billion, not including the latest two vehicles.

"Alpha and Keppel T&T's collaboration on the new data center fund in particular, showcases how we can draw synergies from the Keppel Group's multi-business strategy to create value for investors. Through harnessing strengths and driving greater collaboration across the different business units, Keppel Capital can play an important role in growing the group's recurring income as a premier asset manager and trusted investment partner, and at the same time, generate positive spin-offs for the group's business verticals," Christina Tan, CEO of Keppel Capital and managing director of Alpha, said in a statement.

Keppel Corporation has interests spanning offshore and marine services, property, infrastructure, and solutions for sustainable urbanization. The company generated S$10.3 billion in revenue last year, down from S$13.3 billion in 2014, while net profit dropped to S$1.59 billion from S$2.43 billion over the same period.

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• Topics
• Southeast Asia
• Fundraising
• Real estate
• Infrastructure
• Singapore