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A unit of Keppel Corporation’s asset management arm has agreed to set up a private fund with Australian retail property group Vicinity Centres, who will invest in an initial A$1 billion (S$1 billion) portfolio of Australian retail properties presently owned by Vicinity.
The fund will be managed by a joint venture in which Keppel Capital, the asset management arm of Keppel Corp, will hold a 50 percent stake. Vicinity Centres will initially inject around A$1 billion of retail assets across five Australian states into the proposed fund, revealed Keppel in an SGX filing.
“Each party is expected to initially hold up to a 10 percent equity interest in the proposed fund, which is targeted to close by the end of the first quarter in 2019,” it said.
“The ongoing investment strategy of the proposed fund will be to own, acquire and grow a diversified portfolio of Australian retail assets with stable yields and potential long-term capital growth, underpinned by high occupancy rates, balanced lease expiries and a diversified tenant base predominantly focused on non-discretionary spending.”
It was noted that the proposed fund will benefit from the extensive investor network of Keppel as well as the strong capabilities of Vicinity in the Australian retail sector.
As one of the biggest retail property managers listed on the Australian Securities Exchange, Vicinity has A$26 billion in retail assets under management in 81 shopping centres and a fully integrated asset management platform.
Eugenia Rosaline Shlaen edited this story. To contact her about this or other stories, email eugenia@propertyguru.com.sg
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