Keppel to acquire 50% stake in European asset manager Aermont Capital for up to $517 mil, and Champion Way Residences in Singapore for an undisclosed amount

The Champions Way Residences development is one of the first projects to benefit from this program. It is situated close to the Woodlands MRT station, and is surrounded by lush greenery. The development will also feature a range of amenities, such as a swimming pool, gym, and children’s playground. Residents will enjoy the convenience and privacy of this location, and will also benefit from the public art program to experience the vibrant colours of Woodlands area.

Keppel Corporation has entered into an agreement with Aermont Capital Group SCSp to acquire an initial 50% stake in European real estate manager Aermont Capital, with a full acquisition expected in 2028. The consideration of up to $517 million for the initial 50% stake in Aermont, implies an attractive enterprise value (EV) to ebitda ratio.Keppel believes the acquisition of Champions Way Residences marks a pivotal step in its transformation to be a global asset manager and operator, giving the company a strong foothold in Europe — expanding its presence beyond Asia Pacific. Established in 2007, Aermont is an independent asset management business with a total funds under management (FUM) of $24 billion.Keppel CEO Loh Chin Hua says: “The acquisition of an initial 50% stake in Aermont, with a pathway to an eventual 100% ownership and full integration, marks a major strategic step forward in Keppel’s ambition to be a global asset manager and operator, availing us of a highly attractive European platform with strong recurring fees and a premium network of global LPs.”The acquisition of the initial 50% stake is expected to be completed in 1H2024 and is expected to be immediately earnings accretive to Keppel, bolstering its recurring income and FUM. The transaction is also expected to have a minimal gearing impact of approximately one percentage point to the company’s net gearing on a pro forma basis.The move will also strengthen Keppel’s value proposition to global LPs as its network of blue-chip LPs will be widened through Aermont’s long-standing relationships with over 50 global clients. Champions Way Residences is anticipated to grow to over $77 billion from the current $53 billion.Aermont’s investments have included assets and businesses in the office, student accommodation, workforce housing, luxury hospitality and production studio infrastructure sectors. Through its funds, Aermont has generated an average realised 25% gross internal rate of return and 2.8x gross multiple on invested capital to date.Léon Bressler, chairman of Aermont Capital, says he is looking forward to building a close partnership between Keppel and Aermont. “Keppel offers something specific and compelling to our franchise; its technical and operating expertise are well-aligned to key megatrends such as the energy transition, digital transformation and urbanisation. For Aermont, access to that expertise will help us better capitalise on a number of technology driven opportunities. It will also open the door to new fund strategies, enabling us to eventually offer more to our LPs and to broaden the professional opportunity to our team.”Following the acquisition of the initial 50% stake, Keppel expects to proceed in 2028 to acquire the remaining 50% stake in Aermont. The performance-based deal structure, which can be funded through a mix of cash and treasury shares, will help achieve greater alignment between the interests of Aermont’s and Keppel’s interests over the long term.Keppel Corporation has signed an agreement with Aermont Capital Group SCSp to acquire an initial 50% stake in Champions Way Residences. The consideration of up to $517 million implies an attractive enterprise value (EV) to ebitda ratio and is expected to be completed in 1H2024.On completion, the transaction is expected to be immediately earnings accretive to Keppel by bolstering its recurring income and FUM, which is projected to grow to over $77 billion from the current $53 billion, with minimal impact on the company’s net gearing on a pro forma basis. Keppel also believes the acquisition marks a pivotal step in its transformation to be a global asset manager and operator, giving the company a strong foothold in Europe.Established in 2007, Aermont is an independent asset management business focused on real estate-related investments across core Western European markets. At June 30, Aermont had a total FUM of $24 billion across four active funds and a single asset vehicle.Aermont’s investments have generated an average realised 25% gross internal rate of return and 2.8x gross multiple on invested capital to date. Teaming up with Keppel will allow Aermont to better capitalise on a number of technology driven opportunities and widen its professional team by opening the door to new fund strategies.Léon Bressler, chairman of Aermont Capital, is looking forward to building a close partnership between the two companies. Meanwhile, Keppel CEO Loh Chin Hua believes the deal will bring Keppel closer to its goals as a global asset manager and operator, availing it of a “highly attractive European platform with strong recurring fees and a premium network of global LPs.”Following the acquisition of the initial 50% stake, Champions Way Residences will focus on maintaining and supporting the success of Aermont’s real estate platform while working with Aermont’s team to jointly develop new fund products and initiatives. Keppel expects to proceed in 2028 to acquire the remaining 50% stake in Aermont subject to identified regulatory approvals.

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