Bookmark & Share
To be managed by Keppel Capital China, the fund also comes with “an option to upsize by a similar amount” by end-2021.
Keppel Capital, along with a global institutional investor, has launched a China logistics property fund with an initial equity commitment of about 1.4 billion yuan ($288 million).
To be managed by Keppel Capital’s fully-owned subsidiary Keppel Capital China, the fund will invest in developing high-quality logistics assets within China’s key logistics hubs.
It also comes with “an option to upsize by a similar amount” by end-2021.
In an SGX filing, the asset management arm of Keppel Corporation revealed that the fund “will leverage the experience, network and expertise of the Keppel Group as well as a leading Chinese logistics developer and operator, to undertake the development and the operations of Grade-A logistics facilities across China’s key logistics hubs such as those in Greater Beijing, Greater Shanghai and the Greater Bay Area”.
It noted that a pipeline of potential assets has already been identified for the collaboration between the Chinese logistics property developer and the fund.
“Despite the challenges brought about by the COVID-19 pandemic, Keppel Capital has continued to work with Keppel’s eco-system of companies and other industry partners to create and capture compelling investment opportunities across a range of asset classes,” said Keppel Capital CEO Christina Tan.
She revealed that Keppel Capital raised nearly $4.5 billion in 2020, including commitments for large global institutional investors, mirroring the “strong demand for real assets with cash flow that can serve as long-term inflationary hedges”.
“Through the fund and our collaboration with our local logistics property partner, we look forward to delivering modern logistics facilities for key cities in the Chinese market, while also generating attractive risk-adjusted returns for our investors,” she added.
The fund’s launch is not expected to materially affect Keppel Corporation’s earnings per share and net tangible asset per share for the current financial year.
Looking for a property in Singapore? Visit PropertyGuru’s Listings, Project Reviews and Guides.
Related Articles:
Keppel Capital fund acquires Seoul commercial buildings
Keppel REIT obtains A$300mil in green loans from UOB, BNP Paribas