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

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

keppel corp
Keppel's logo in the central business district of Singapore. (Photo: Reuters/Edgar Su)

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.

Source: Reuters

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