Keppel Corporation aims to sell down real estate assets totalling between S$3bn and S$5bn (€1.9-€3.1bn) over the next three years to free up capital for new investment opportunities.
At a briefing with the media and analysts in Singapore, Loh Chin Hua, CEO of Keppel Corporation, said: “As part of Vision 2030, we have identified a portfolio of assets with a carrying value of approximately S$17.5bn, based on the group’s balance sheet as at 30 June 2020, that can potentially be monetised without changing the businesses we run.”
Loh said an important pillar of the strategy was to be asset-light through disciplined capital recycling, and by tapping partnerships and third-party funds to expand Keppel’s capital base for investments.
“Over the next three years, we plan to monetise about S$3-S$5bn of these assets to seize new opportunities that can help achieve our desired returns.”
The assets included the group’s land bank and projects under development, valued at about S$7bn, Loh said.
Of these, S$4.8bn in assets could be monetised through Keppel’s real estate or other investment trusts or divested to third parties.
Loh said some of the group’s other holdings, valued at S$1.8bn and currently held in vehicles run by Keppel Capital, could also be monetised as the funds matured.
He stressed that the portfolio identified for monetisation did not include assets in the group’s key business platforms, or fixed assets.
“As a sponsor and key stakeholder, we remain committed to growing the REITs and trusts managed by Keppel Capital. We plan to monetise a number of our assets through these listed vehicles,” he said.
On future growth, Loh said Keppel would “actively” pursue opportunities in data centres, environmental solutions, renewable energy, integrated smart districts, asset management, and other prospects in sustainable urbanisation and circular economy solutions.
To read the digital edition of the latest IPE Real Assets magazine click here.