Singapore’s Keppel to set up Australian property fund with Vicinity Centres

07-Aug-2018 Intellasia | Channel Newsasia | 6:02 AM Print This Post

Keppel Corp said on Monday (August 6) a unit of its asset management arm had entered a memorandum of understanding with Australia’s Vicinity Centres to establish a private fund.

The companies intend to invest in an initial A$1 billion (S$1.01 billion) portfolio of Australian retail properties currently owned by Vicinity, Keppel said in a statement, adding that the parties plan to manage the fund through a joint venture.

Keppel Capital, which is Keppel Corp’s asset management arm, will hold a 50 per cent stake in the venture with Vicinity, and each party will hold a 10 per cent equity stake in the fund.

Keppel said Vicinity is expected to initially inject about A$1 billion of retail assets across five Australian states into the proposed fund, which is expected to close by the first quarter in 2019.

Vicinity Centres was not immediately available for a comment.


Category: Singapore

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