Joint investment between Keppel Land and private funds managed by subsidiaries of Keppel Capital reinforces the Group’s asset-light strategy.

Keppel Land Limited (Keppel Land)^[1], Keppel Asia Macro Trends Fund IV (KAMTF IV) and KB Bank Discretionary Fund have entered into agreements for the proposed acquisition of Samhwan Building, a freehold 15-storey office tower located in Seoul, South Korea, at a purchase price of approximately KRW 220 billion (approximately S$228.7 million^[2]).

KAMTF IV and KB Bank Discretionary Fund are respectively managed by Alpha Investment Partners Limited and Keppel Investment Management Co., Ltd., both of which are wholly owned subsidiaries of Keppel Capital Holdings Pte. Ltd. (Keppel Capital). Upon completion of the transaction, Keppel Land^[1] will hold a 39.5% effective interest in Samhwan Building, while the remaining 31.1% and 29.4% effective stakes will be acquired by KAMTF IV and KB Bank Discretionary Fund respectively. The transaction is expected to be completed by end December 2022.

Upon acquiring the property and on securing the relevant regulatory permit, asset enhancement initiatives including horizontal extension to expand its leasable office space as well as refurbishment of existing spaces will be carried out to enhance the property’s value. In addition, Keppel will look into incorporating sustainability features, such as high-performance building facades, energy-efficient cooling and heating systems, smart lighting systems, indoor environmental quality monitoring as well as intelligent building controls, to improve the asset’s operational efficiencies and performance.

Mr Louis Lim, CEO of Keppel Land, said, “Keppel Land is excited to expand into South Korea through the acquisition of Samhwan Building in partnership with the private funds under Keppel Capital. This joint investment not only harnesses the Group’s complementary strengths across real estate solutions and asset management but also reinforces Keppel’s asset-light business model which leverages third-party funds for growth. When refurbishment works are completed, Samhwan Building will be a showpiece in South Korea of Keppel Land’s Sustainable Urban Renewal capabilities, which leverages digital technologies to retrofit, future-proof and extend the lifespan of commercial buildings.”

Ms Christina Tan, CEO of Keppel Capital, said, “As the business and financial hub of South Korea, Seoul has seen a rising demand for quality office spaces in the city. We are pleased to collaborate with Keppel Land on the acquisition of Samhwan Building, a uniquely located prime asset in the heart of the central business district, which is well-poised to capture this growing demand. Keppel Capital has managed close to S$3.4 billion of assets with gross floor area of 6.2 million sf in South Korea since 2004, and we are confident that our experienced team, active asset management on the ground and robust value creation strategies, will enable us to generate good returns for our funds’ investors.”

Samhwan Building currently has a total gross floor area of 31,403 sm. Situated in the central business district in Jongno-gu, Samhwan Building is surrounded by Korean palaces in the UNESCO World Heritage List, and commands unparalleled views of the surroundings. With excellent accessibility, the building is a three-minute walk from the Anguk Station on the Seoul Subway line three, and a 30-minute drive from the other key business districts of Gangnam and Yeouido in Seoul.

The abovementioned transaction is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Corporation Limited for the current financial year.

- END -

About Keppel Land 

Keppel Land is a wholly-owned subsidiary of Keppel Corporation, a Singapore flagship multinational company providing solutions for sustainable urbanisation, focusing on energy & environment, urban development, connectivity and asset management.

Keppel Land is an innovative urban space solutions provider that leverages technology to deliver sustainable and customer-centric solutions that enrich people and communities. It is focused in the areas of sustainable urban renewal, senior living, urban living, retail and large-scale integrated developments.   

Its award-winning portfolio comprises investment-grade commercial properties, residential developments and integrated townships. It is geographically diversified in Asia, with China, Singapore and Vietnam as its key markets, while it continues to scale up in India as well as other developed markets globally.

About Keppel Capital

Keppel Capital is a premier asset manager in Asia. It is the asset management arm of Keppel Corporation, one of Singapore’s flagship multinational companies with a global footprint in more than 20 countries. Keppel Corporation provides solutions for sustainable urbanisation, focusing on energy & environment, urban development, connectivity and asset management.

With assets under management of approximately S$42 billion^[3] as at end-2021, Keppel Capital has a diversified portfolio that includes real estate, infrastructure, data centres and alternative assets in key global markets.

^[1] _{Through its wholly owned subsidiary.}

^[2] _{Based on an exchange rate of SGD 1 to KRW 962.}

^[3] _{Gross asset value of investments and uninvested capital commitments on leveraged basis to project fully-invested AUM.}