Investors back Keppel funds targeting data centres, megatrends

Keppel Capital has raised US$410m (€279m) for two real estate funds, including a vehicle that will focus on data centres.

The Singapore-based investment manager has achieved a first close for the Alpha Data Centre Fund (DC Fund) and the Alpha Asia Macro Trends Fund (AAMTF) III, raising US$130m and US$280m, respectively.

As reported earlier this year, Keppel Capital is seeking to raise US$1.5bn for the two funds. They are expect to reach a first close in a years’ time.

The data centre fund, for which Keppel is aiming to raise US$500m, has attracted support from sovereign wealth funds and corporates.

Keppel Capital launched the unlisted DC Fund to capitalise on the strong demand for data centres in Asia Pacific and Europe, driven by increasing data storage needs, compliance and regulatory requirements, cloud adoption and data centre outsourcing.

The DC Fund will buy greenfield and brownfield assets across data centre hubs in the two regions.

AAMTF III, a follow-on fund from the Alpha Asia Macro Trends Fund (AAMTF) series, was launched in response to support from existing investors from Singapore, Europe and the Middle East.

IPE Real Estate understands that the investors include corporates, pension funds, endowment plans and financial institutions.

First launched in 2007, the Alpha Asia Macro Trends series is designed to capitalise on megatrends that drive long-term growth in Asia-Pacific, including urbanisation, consumerism, growing tourism, aging population and connected cities.

The AAMT series of funds has raised US$3.5bn to date.

Christina Tan, CEO of Keppel Capital and managing director of Alpha, said: “We are encouraged by the good interest that our new private funds are receiving from repeat as well as new institutional investors from around the world.”

When fully invested, the two new funds will add as much as US$3.5bn to Keppel Capital’s total assets under management.

Keppel Corporation last month completed the consolidation of its four asset management businesses under Keppel Capital.

The four entities include Keppel REIT Management, Alpha Investment Partners, Keppel Infrastructure Fund Management and Keppel DC REIT Management. Collectively, they manage assets totalling SGD26bn (€17.7bn).