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Keppel Submits Bid to Acquire SPH’s PBSA Portfolio

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Keppel Corporation has made a S$2.2bn bid to acquire the property and fund management business of Singapore Press Holdings (SPH).

Keppel is backed by Temasek and runs a range of businesses, including real estate investment trusts (REIT) and infrastructure funds, and is looking to snap up SPH's property portfolio. This includes a substantial portfolio of purpose-built student accommodation (PBSA), as well as senior housing in Singapore and suburban retail in Australia.

The deal would involve hiving off the media business owned by SPH, adding S$10bn to the S$37bn in real estate and infrastructure assets managed by Keppel Capital.

Commenting on the bid, CEO Loh Chin Hua said: "This transaction is a key part of Keppel's Vision 2030 plan to transform and grow as one integrated company providing solutions for sustainable urbanisation."

"In our view, SPH represents a rare and attractive opportunity for Keppel to acquire a quality platform that is not only financially attractive but strongly aligned with, and complementary to, Keppel's business model and capabilities."

"We believe Keppel is uniquely positioned to enhance and unlock the value of SPH's portfolio as there is a very natural fit between SPH's businesses and three of Keppel's four focus areas - namely asset management, urban development and connectivity."

If the deal goes ahead, it will give Keppel a footprint in the PBSA market in Europe, which includes the platforms Student Castle and Capitol Students.