Keppel Education Asset Fund II and Keppel Data Centre Fund III have secured fresh capital commitments of US$700 million, representing approximately S$2.3 billion in new FUM.

Global asset manager and operator Keppel Ltd. (Keppel) has raised S$6.3 billion in total Funds under Management^[1] (FUM) year-to-date for its private fund strategies such as those for data centres, education assets and sustainable urban renewal.

This includes the latest capital commitments^[2] of approximately US$700 million (S$907 million) secured from global institutional investors for its Keppel Education Asset Fund II (KEAF II) and Keppel Data Centre Fund III (KDCF III). These commitments represent approximately S$2.3 billion in new FUM.

Ms Christina Tan, CEO of Fund Management and Chief Investment Officer, Keppel, said, “Keppel’s private funds continue to attract robust investor interest, underscoring the strength of our platform and the appeal of strategies aligned with transformative megatrends.

“Education assets are increasingly valued for their defensive qualities and ability to generate stable returns, making them especially attractive in times of economic uncertainty. At the same time, data centres are a cornerstone of the digital economy, supported by the rapid expansion of cloud computing, artificial intelligence and digital infrastructure. Through KEAF II and KDCF III, investors gain strategic exposure to these high-conviction themes in Asia Pacific, where structural demand continues to grow. We would like to thank our Limited Partners for their continued trust in Keppel and our disciplined, value-driven approach to delivering compelling, risk-adjusted returns.” 

KEAF II crossed S$2.6 billion in total FUM

Keppel has secured an additional US$500 million (S$646 million) in committed capital from one of Europe’s largest pension funds, boosting its dry powder for investments in the education sector. This follows KEAF II’s successful first close in April 2025 with commitments from both returning and new LPs across sovereign wealth, insurance, pension and endowment institutions. With this latest capital commitment, KEAF II’s total capital raised has crossed US$800 million, translating into more than S$2.6 billion in FUM.

KEAF II is the second value-add fund in the Keppel Education Asset Fund series. The flagship series focuses on strategic investments in education-related assets and facilities, supporting early learning, K-12, higher education, tertiary education and student accommodation, with a focus on the Asia Pacific region.  

As its first investment, KEAF II has entered into a partnership agreement with Precinct Properties Group to acquire an 80% stake in a purpose-built student accommodation (PBSA) facility in Auckland, New Zealand. Slated for completion in 2028, the development will be the largest PBSA in the country, comprising approximately 960 self-contained studios under a long-term lease to the University of Auckland. This strategic investment allows KEAF II to capitalise on the growing demand for quality student accommodation in Auckland. Other assets in KEAF II’s US$3 billion investment pipeline include properties located mainly in Australia, Japan, Singapore and South Korea.

The Keppel Education Asset Fund series continues to gain traction in the Asia Pacific region. KEAF II’s predecessor fund, Keppel Education Asset Fund I (KEAF I), delivered over 40% average value uplift across assets in Japan and Singapore. Anchored by long leases and diversified across Australia, Japan and Singapore, KEAF I has generated stable cash flows while creating value through strategic repositioning and asset enhancements.

KDCF III achieved total FUM of more than S$2.6 billion to date

Keppel’s third data centre fund, KDCF III, continues to build strong momentum with global institutional investors, securing an additional US$200 million (S$261 million) in capital. This brings KDCF III’s total capital raised to nearly US$800 million to date, representing more than S$2.6 billion in FUM^[3].

KDCF III will draw on Keppel’s deep expertise in developing and operating data centres to invest in a portfolio of sustainable, best-in-class data centres across Asia Pacific. It will focus on securing pre-commitments or high leasing certainty from hyperscale customers, which would mitigate portfolio leasing risk for investors.

As part of Keppel’s integrated ecosystem, KDCF III will benefit from synergies across Keppel’s operating divisions, such as the sourcing of renewable energy and advanced cooling infrastructure, which are increasingly important to hyperscalers. KDCF III will also be able to tap on Keppel’s strong customer relationships with hyperscalers to access off-market opportunities, as well as Keppel’s proprietary assets.

The above-mentioned developments are not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Ltd. for the current financial year.

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About Keppel

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.

^[1] Gross asset value of investments and uninvested capital commitments on a leveraged basis is used to project fully-invested FUM.

^[2] Including co-investments.

^[3] Includes S$400 million raised for Keppel Data Centre Fund III in late-2024.