Keppel Acquires Aermont, Ushering in Growth and Diversification.

December 06, 2023: Keppel Corporation, a leading Singaporean conglomerate, announced today its strategic acquisition of Aermont Capital, a top-ranked European real estate asset manager. This move marks a significant step in Keppel’s ambition to become a global asset manager and operator.

The acquisition, valued at up to €931.9 million (approximately S$1.3 billion), will be conducted in two phases. Keppel will initially acquire a 50% stake in Aermont, with the option to purchase the remaining 50% in 2028.

Aermont boasts a strong portfolio of offices, student accommodation, workforce housing, hotels, and production studios across ten key Western European cities. This acquisition significantly expands Keppel’s geographic reach and asset base beyond Asia-Pacific.

Analysts anticipate this move will deliver substantial growth and diversification benefits for Keppel. The acquisition is expected to:

Boost recurring income: Aermont’s strong focus on fee-based income will provide Keppel with a stable and predictable revenue stream.

Expand funds under management (FUM): The acquisition is projected to increase Keppel’s FUM by $24 billion to over $77 billion, solidifying its position as a leading global asset manager.

Diversify investor base: Aermont’s network of global limited partners will provide Keppel with access to new capital and investment opportunities.

Strengthen European presence: Aermont will become Keppel’s European real estate platform, allowing it to tap into the region’s growing market.

“The acquisition of Aermont is a significant step forward for Keppel,” said Loh Chin Hua, CEO of Keppel Corporation. “It will accelerate our growth as a global asset manager and operator and further diversify our income streams and investor base.”

Analysts have lauded the move, highlighting its potential to transform Keppel into a global asset management powerhouse. “This acquisition arguably puts Keppel into the league of global asset managers,” noted Adrian Loh, a leading analyst.

With the acquisition of Aermont, Keppel is well-positioned for continued growth and diversification in the global real estate market.