SINGAPORE: Keppel Corp said on Monday (Aug 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.