The Keppel Education Asset Fund, LP is a pan-Asia value-add education real estate fund. Globalisation, coupled with rising wealth, rapid urbanisation, growing middle income families and higher value placed on education, has driven strong growth in the private education sector.

Keppel Education Asset Fund (GP) Pte. Ltd. (the “General Partner” or “GP”) seeks to work with established education operators to capitalise on the growing opportunities in the private education sector in the key cities within the Asia Pacific region. While it aims to achieve its target returns through deploying value-add real estate strategies for its investments, it would also seek to develop sustainable assets and campus together with the school partners.

The General Partner aims to create a balanced portfolio of stable, brownfield and greenfield assets with established operators in different education sub-sectors across different cities.

Sustainable Finance Disclosure Regulation (SFDR)

KEAF I and KEAF II are SFDR Article 6 and Article 8 compliant funds respectively. The below pertain to KEAF I’s SFDR disclosures as an Article 6 compliant fund. For KEAF II’s SFDR disclosures, please refer here.

Integration of sustainability risks in investment decisions

Sustainability risks are integrated into KEAF I's investment decision-making. At the screening and due diligence stage, an ESG due diligence checklist is applied to identify sustainability risks that may be material to a prospective investment. Findings are considered by the investment team alongside other financial and non-financial risk factors. Where material risks are identified, these are reflected in the investment and/or asset management planning as appropriate.

The Fund's approach is aligned with the sustainability management framework of Keppel Ltd., which is a participant of the United Nations Global Compact and through Keppel’s Fund Management and Investment (“Keppel FM&I”) platforms, a signatory to the UN Principles for Responsible Investment. In addition, KEAF I adopts Keppel FM&I platforms’ Responsible Investment Policy, which communicates Keppel FM&I’s (including the Fund’s) overarching investment approach towards ESG issues.

Assessment of the likely impacts of sustainability risks on returns

KEAF I views ESG as an integral part of the Fund’s risk management system and mitigation of such risks helps to create sustainable value and ensure long term outperformance. ESG risks may affect investment returns by impacting asset values, increasing operating or compliance costs, or limiting financing options. These risks can arise from environmental liabilities, climate-related events, and resource variability, ultimately influencing financial performance. The likelihood and magnitude of such impacts vary by asset, sector and geography and cannot be predicted with certainty.

To address these risks, the Fund has in place an Environmental and Social Management System (ESMS) that outlines how ESG factors are integrated in the Keppel Education Asset Fund Series’ investment cycle. The process starts at the investment screening and due diligence stage, through the portfolio management and exit stages. KEAF I is managed in accordance with the ESMS, which prescribes the ESG framework to assess and ensure the management of environmental and social impacts and risks associated with investments.

No consideration of principal adverse impacts

While KEAF I does not consider the principal adverse impacts of its investment decisions on sustainability factors as referenced in Article 7(1)(a) of SFDR, the Fund applies an ESG due diligence checklist, and the policies and procedures referenced in it, to the Fund's investments. The Fund will keep its position on PAI consideration under review as needed.

Entity-level disclosures

For further information on SFDR disclosures at the entity level, please refer here.