Singapore-based asset manager Keppel Corporation is buying European real estate manager Aermont Capital in a deal worth up to S$1.34bn (€916m).

Keppel said it would acquire an initial 50% stake in Aermont for up to S$517m to be completed in the first half of 2024. After a transition period, Keppel expects to acquire the remaining 50% stake in Aermont in 2028.

On completion, the transaction will add S$24bn across four active funds and a single asset vehicle, of which approximately S$10bn in equity commitments were raised in 2022 to Keppel’s existing S$53bn of funds under management.

Established in 2007, Aermont is an independent asset management business focused on real estate and real estate-related investment activities in Europe.

Keppel said Aermont’s investments had included assets and businesses in the office, student accommodation, workforce housing, luxury hospitality and production studio infrastructure sectors, among others. 

Loh Chin Hua, CEO of Keppel Corporation, said: “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 [linited partners].”

Léon Bressler, chairman of Aermont Capital, said: “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.”

Bressler said for Aermont, access to that expertise would help the firm 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,” he said.

To read the latest IPE Real Assets magazine click here.