KEPPEL has achieved its first close for the Keppel Sustainable Urban Renewal Fund after securing Korean institutional capital.

On Monday (Apr 8), the global asset manager and operator said this brings total funds under management in its sustainable urban renewal (SUR) strategy to over US$1.7 billion.

The flagship fund invests in real estate and platform opportunities to create sustainable assets across real estate segments including commercial, living, life sciences, hospitality and logistics in Singapore, South Korea, Japan, Australia and first-tier cities in China.

Through its SUR capabilities, Keppel aims to rejuvenate older buildings with green technology and incorporate green design features while redeveloping existing buildings that require a major overhaul or rebuild.

The group said it is presently doing so for several projects in markets including Singapore, Australia and China.

The group also sees a “large addressable market of existing buildings to decarbonise”, which in turn “presents compelling opportunities” for such a strategy.

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Asset enhancement and sustainability solutions offered by Keppel’s SUR strategy includes renewable energy, energy and water saving solutions, as well as smart building controls.

Christina Tan, Keppel’s chief executive of fund management and the group’s chief investment officer, said: “Keppel’s SUR strategy is a unique series of fund products designed to address the urgent call to decarbonise the world’s built environment, with the aim of achieving both strong sustainability outcomes and good investment returns.”

Louis Lim, chief executive of real estate for Keppel, added: “We look forward to contributing our expertise to our private funds to improve the operational efficiency and performance of the assets to meet evolving tenant demands.”

The group does not expect its first close of the Keppel Sustainable Urban Renewal Fund to have a material impact on its earnings per share, nor net tangible assets per share, of its current financial year ending Dec 31, 2024.

Shares of Keppel ended S$0.02 or 0.3 per cent lower at S$7.30 on Friday.