Singapore’s Keppel Corporation on Thursday announced that it has secured 1.6 billion yuan (about $218 million) in initial commitments for its China-focused Sustainable Urban Renewal (SUR) strategy.
Keppel is committing about $22 million to the SUR strategy, which was launched in response to growing global demand for more environmentally efficient urban renewal solutions in gateway cities.
The SUR strategy will have assets under management of about 3.9 billion yuan when fully leveraged and invested, Keppel said. Its two partners have the option to upsize their stake.
Per the announcement, Keppel aims to scale its private fund investments in this area through the Keppel Sustainable Urban Renewal Fund (KSURF) to $2 billion over time.
The company is currently implementing its SUR strategy in several projects in real estate markets including Singapore, China, India, South Korea, Japan, and Australia.
“The successful closing of the programme, anchored by a significant global investor, attests to Keppel’s ability to create targeted, highly attractive investment portfolios that global investors seek. It will also drive further investor interest and momentum for KSURF,” said Christina Tan, CEO of Fund Management and CIO of Keppel Corporation.
The successful close of SUR strategy comes about a week after Keppel announced raising $575 million in funding for its flagship infrastructure fund, Keppel Core Infrastructure Fund. The fund targets to achieve funding of $2.5 billion, with a focus on infrastructure assets across the Asia-Pacific developed markets.
Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal, and digital connectivity.
It reported a net profit of S$3.6 billion ($2.7 billion)—its highest in 55 years—for the six months ended June 30, 2023. In H1 2022, it had posted a net profit of S$498 million ($374 million).