Keppel’s  private fund acquires 2 education assets in Sydney for $175m

The acquisition will bring Keppel’s portfolio to $4.3b of assets in Australia.

Keppel Corporation’s private fund, Keppel Education Asset Fund (KEAF), has acquired two education assets in Sydney, Australia, for $175m (A$198m).

In a bourse filing, Keppel said the acquisition would bring its portfolio to $4.3b (A$4.8b) of assets in Australia.

The first education asset KEAF acquired in Australia is an existing purpose-built campus strategically located in Kensington, Sydney. The fund acquired the asset in August 2023.

The property has a total net lettable area of approximately 10,700 sm. It is  fully leased to the University of New South Wales (UNSW), one of Australia’s leading universities, on a long-term basis

The second asset is a seven-storey commercial building located within the Ward Street Precinct in North Sydney. The fund will acquire the property under a forward purchase agreement.

Under the agreement, Keppel will have to carry out extensive asset enhancements to the existing building to upgrade and convert it to a K12 independent school campus, which will yield a total net lettable area of approximately 9,150 sm. 

The property comes with pre-commitment from a leading global operator of premium schools for a long-term lease. 

The completion of the acquisition of the second asset is subject to the fulfilment of conditions precedent and is expected to take place by the first quarter of 2025.