Keppel Corp’s four asset management subsidiaries are Keppel Infrastructure Fund Management, Keppel DC REIT Management, Keppel REIT Management, and Alpha Investment Partners.
The restructuring will not change the unitholdings in the real estate investment trusts (REITs) and business trust or investments in the funds.
No job losses
There will be no job losses from the restructuring, the company said in an e-mail to Reuters, adding: “Each business vehicle will continue to retain its key management and employees to ensure business continuity.”
Loh Chin Hua, chief executive of Keppel Corp, said: “Keppel’s asset management businesses currently manage SGD26bn (£12.7bn, $18.2bn, €16.8bn) of quality assets and contributed SGD60m of profits in 2015. The consolidation under Keppel Capital is part of our continuing plan to grow our assets under management and expand our capital platform for co-investing.”
Christina Tan has been appointed the chief executive-designate of Keppel Capital. Tan is presently the managing director of Alpha. She has more than 20 years’ experience in investing and fund management spanning the US, Europe and Asia, and has been with Alpha since its inception in 2003. Under her leadership, Alpha has grown its assets under management to over SGD12bn.
Approval needed
The proposed consolidation is subject to board approval and (if required) shareholder and/or unitholder approval of the relevant Keppel Group entities, as well as the approval of the Monetary Authority of Singapore (MAS) and other relevant regulatory approvals.
Subject to obtaining the relevant approvals, Keppel Corp aims to complete the proposed consolidation by the second half of 2016.
Once completed, Keppel Corp may consider increasing its scope to include regulated activities relating to investments and asset management, something that would only be undertaken after obtaining the necessary licences and approvals from MAS.
