Singapore-based Keppel Corporation Limited – engaged in the offshore and marine and property businesses – is looking at property, infrastructure and fund management as its key growth drivers.
In its FY2018 annual report, Keppel CEO Loh Chin Hua has outlined several transformation initiatives that the company has undertaken to move up the value chain.
To tap the vast opportunities in the infrastructure space, Keppel is looking at not only developing infrastructure assets, but also managing them through partnerships with institutional investors who might want to have some exposure in infrastructure as an asset class.
Keppel is also open to bringing in co-investors through the funds that it manages. “Upon completion and de-risking the infrastructure projects, Keppel is open to injecting them into one of its listed trusts,” he said, in the annual report.
Keppel is also seeking to expand into different allied sectors such as senior living, education, real estate and renewables. In line with its strategy, Keppel Capital recently announced acquisitions worth over S$2 billion including the acquisition of industrial infrastructure company Ixom, the proposed purchase of a 50 per cent stake in US senior living operator Watermark Retirement Communities.
It also set up new funds for education-related real estate and Australian retail properties. In January 2019, Alpha Investment Partners closed the $1.1 billion Alpha Asia Macro Trends Fund III, 10 per cent above its initial target.
On the fund management side, Keppel Capital has total assets under management (AUM) of over S$29.0 billion ($21.4 billion). It is set to achieve its target of S$50.0 billion AUM by 2022.
Keppel Capital is also forming funding platforms with co-investors, allowing it to seize growth opportunities across its chosen sectors, while generating recurring fee income.