Keppel Capital and the National Pension Service of Korea (NPS) have tied up to seek investments in Asia’s private infrastructure sector, Keppel Corp. said in a filing to the Singapore Exchange (SGX) on Monday.
The strategic deal is expected to tap the asset management expertise of both NPS and Keppel Capital as well as Keppel Group’s development and operation of complex real estate assets in sectors including energy, environmental infrastructure, and urban development, the statement said.
The newly announced agreement is expected to build on a previous deal between NPS, which is the world’s third-largest pension fund, and Keppel Capital, the filing said.
A Keppel Capital spokesperson told DealStreetAsia the previous deal was NPS’ investment into a private Keppel infrastructure fund. The spokesperson declined to comment further, saying the information was commercially sensitive.
“Notwithstanding the current challenging macroeconomic environment, we are confident that by working together with a world-class and like-minded institutional investor, we will be able to synergise and tap on each other’s expertise and capabilities, given that we both embrace a value-oriented shareholder focus and disciplined approach to investment,” Christina Tan, CEO of Keppel Capital, said in the statement.
The tie-up may also spur collaboration in Keppel Capital’s other assets classes, such as real estate, data centres and senior living, the statement said.
So far this year, Keppel Capital has launched an Asia-focussed infrastructure fund, a private credit fund and an Indonesian logistics-property venture. It has also tied up with Australian Unity to set up funds focussed on Australia’s metropolitan office sector.
Keppel Capital also entered China’s data centre market earlier this year, when a data centre-focussed fund managed by its unit invested around 1.5 billion yuan ($221.9 million) into a project in Guangdong Province.
As Keppel Corp.’s asset management arm, Keppel Capital had around S$33 billion ($24.4 billion) under management as of end-2019, including in real estate, infrastructure and data centres. It also offers products including listed Real Estate Investment Trusts (REITs), business trusts, private funds and pooled investment vehicles.