Keppel announced the proposed acquisition of Aermont Capital (Aermont), a European real estate asset manager. Aermont has S$24bn of total funds under management (FUM) as at end-Jun 2023, and focuses on real estate investments in Western Europe.
Two phases of transaction to complete by 1H24 and 2028
- Read this at SGinvestors.io -
phase 2 would commence and it would acquire the remaining 50% in 2028F for ~S$834m.
In both phases, the consideration will be funded via a mix of cash and treasury shares. Keppel expects the transaction to be immediately accretive upon the close of phase 1.
Accelerating FUM growth and growing its foothold in Europe
- Read this at SGinvestors.io -
Keppel also sees value in growing its real estate footprint in Europe, where the group currently only has renewable and data centre assets.
Management sees minimal overlap in capabilities between Keppel and Aermont, and highlighted the possibility of expanding Aermont’s investment outreach to Asia over the longer-term.
Valuation seems fair, with longer-term benefits for Keppel
Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB. Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
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