MARKETS & INVESTING | Staff Reporter, Singapore

Keppel unifies asset management businesses under Keppel Capital

It plans to ease reliance on its balance sheet.

The multi-faceted firm takes its asset management business a notch higher as it reveals plans plans to consolidate its interests in business trust, REIT, and fund management businesses under Keppel Capital Holdings.

According to a press release by Keppel, asset management is one strong facet of Keppel Corporation, which currently has four subsidiaries in asset management.

Loh Chin Hua, CEO of Keppel Corporation, said creating and developing high quality real estate and infrastructure assets, as well as stabilising them to generate strong cash flow and recurring income are essential parts of Keppel’s business model.

“Keppel’s asset management businesses currently manage S$26 billion of quality assets and contributed S$60 million of profits in 2015. The consolidation under Keppel Capital is part of our continuing plan to grow our assets under management and expand our capital platform for co-investing,” Loh said.

Meanwhile, OCBC says Keppel may opt to consider increasing the scope of support functions to include regulated activities after the consolidation.

“We are positive on this development as it helps to strengthen the group’s capital platform for co-investing, without relying solely on its balance sheet,” OCBC said.

However, headwinds from the offshore and marine industry remain a roadblock, OCBC added.

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