Singapore-based Keppel Capital Ventures has joined forces with MindChamps PreSchool to launch a SGD200m (€125m) education real estate fund.

Keppel MindChamps Education Real Estate Fund will invest in preschool and early learning centres throughout Asia-Pacific.

As part of the 50-50 joint venture, the acquired assets will be leased to MindChamps or its related fund entities, franchisees or licensees under long-term leases.

MindChamps, the first Singapore Exchange-listed operator of preschools and early learning centres, currently owns 15 centres in Singapore.

It also operates 46 franchised centres in six countries, including Australia, United Arab Emirate, Vietnam and the Philippines.

Christina Tan, CEO of Keppel Capital, described the venture as “a strategic” initiative for Keppel Capital, adding that the investment would provide a vehicle to expand into investing in education real estate assets.

She added that the new fund would create a new alternative asset class that would generate stable cash flow for Keppel Capital’s investors.

MindChamps, founder and CEO and executive chairman, David Chiem, said: “The partnership between MindChamps and Keppel Capital provides the perfect platform for launching this fund to the world.”

Chiem said MindChamps has been working on a strategy to connect its education model (the software) with tangible property assets (the hardware).