Keppel Corporation said it has completed the consolidation of its interests in the group's four asset management businesses under its wholly-owned subsidiary, Keppel Capital Holdings.
The latter now owns 100 per cent interests in Keppel Reit Management, Alpha Investment Partners and Keppel Infrastructure Fund Management, as well as a 50 per cent interest in Keppel DC Reit Management.
Keppel Data Centres, a wholly- owned subsidiary of Keppel Telecommunications & Transportation, will continue to own the other half of Keppel DC Reit Management.
"Keppel's business model involves creating and developing high-quality real estate and infrastructure assets, as well as stabilising and monetising them to generate strong cash flow and recurring income," Keppel Corp chief executive Loh Chin Hua said.
"The formation of Keppel Capital will allow us to more effectively recycle capital and expand our capital base with co-investments, giving the group greater capacity to seize opportunities for growth without putting a strain on our balance sheet," he added.
Keppel Capital currently has assets under management of approximately $26 billion in the real estate, infrastructure and data centre spaces.
Last year, the asset management business contributed a net profit of $60 million to the group.
With the consolidation, certain non-regulated support functions have been centralised, creating greater synergies among the asset managers while improving the operational efficiency as the managers focus resources and efforts on growing and improving their business performance, Keppel said.