Keppel Capital subsidiary Keppel Capital Ventures has entered a memorandum of understanding with Australia-based retail landlord Vicinity Centres to establish a private fund, Vicinity Keppel Australia Retail Fund.
This will be Keppel Capital’s first retail-focused real estate fund. It is targeted mainly at offshore institutional investors.
The companies intend to invest in an initial A$1 billion ($739.4 million) in a portfolio of Australian retail properties currently owned by Vicinity.
Keppel Capital, which is Keppel Corp.’s asset management arm, will hold a 50 percent stake in the venture with Vicinity, and each party will hold a 10 percent equity stake in the fund, which is expected to close by the first quarter in 2019.
The retail assets are located across five Australian states.
Vicinity Centres will continue to provide property and development services for the shopping centers.
Vicinity Centres said the launch of the VKF is the nex
