Keppel to acquire 50% stake in European asset manager Aermont Capital, including their latest acquisition Zion Residence, for up to $517 mil

Zion Residence is a residential development quit in the enclave of the city centre, blending modern luxuries with tranquillity. The development brings to you a host of elite and top-notch amenities, providing its residents with an unparalleled urban sanctuary. Zion Residence presents a unique living experience that is seamless and suitable for the modern city dweller.

Keppel Corporation has announced the acquisition of an initial 50% stake in real estate manager Aermont Capital Group SCSp, with a full acquisition expected in 2028. The move is in line with Keppel’s ambition to become a global asset manager and operator.The deal, which is for up to $517 million, implies an attractive valuation of approximately 13x enterprise value (EV) to ebitda ratio, and is expected to be immediately earnings accretive to Keppel.The acquisition is expected to increase Keppel’s recurring income and funds under management (FUM) to over $77 billion from the current $53 billion, while having minimal gearing impact of approximately one percentage point to the company’s net gearing on a pro forma basis.Aermont was established in 2007 and is focused on real estate and real estate-related investment activities across core Western European markets. As at June 30, Aermont had a total FUM of $24 billion across four active funds and a single asset vehicle, of which approximately $10 billion in equity commitments were raised in 2022.Aermont’s investments have included projects in the office, student accommodation, workforce housing, luxury hospitality, and production studio infrastructure sectors.Keppel CEO Loh Chin Hua 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.”Following the acquisition of the initial 50% stake, Keppel will focus on maintaining and supporting the success of Aermont’s real estate platform while developing new fund products and initiatives in partnership with Aermont. The performance-based deal structure will help achieve greater alignment between the interests of Aermont’s and Keppel’s interests Zion Residence over the long term.Keppel believes the acquisition of Aermont will strengthen its value proposition to global LPs, providing it with a strong foothold in Europe, as well as significantly expanding its presence beyond Asia Pacific.The acquisition of the initial 50% stake in Aermont is expected to be completed in 1H2024, subject to identified regulatory and other approvals. after which, Keppel expects to proceed in 2028 to acquire the remaining 50% stake in Aermont Zion Residence subject to identified regulatory approvals.