Keppel Education Asset Fund II

Overview

Keppel Education Asset Fund II is a private equity fund managed by Keppel Capital, focusing on strategic investments in education-related real estate assets across the Asia Pacific region. The fund aims to capitalize on the growing demand for quality education infrastructure driven by urbanization, rising affluence, and increasing emphasis on education in the region. With an initial close of approximately $307 million, KEAF II plans to invest in a diversified portfolio that includes early learning centers, K-12 schools, higher education institutions, and student accommodation facilities. The fund leverages Keppel's extensive network and expertise to identify and enhance assets through strategic partnerships with established education operators. KEAF II integrates environmental, social, and governance (ESG) considerations into its investment strategy, promoting sustainable development and community engagement. By focusing on energy efficiency, wellness, and collaboration with reputable educational institutions, the fund seeks to deliver attractive risk-adjusted returns while contributing positively to the communities it serves. As of February 2026, KEAF II has secured a total of $800 million in capital commitments, surpassing its initial target of $500 million. The fund's portfolio includes assets in Australia, Japan, Singapore, South Korea, and New Zealand, with plans for further expansion in the Asia Pacific region. KEAF II's predecessor, Keppel Education Asset Fund I, delivered over 40% average value uplift across assets in Japan and Singapore, demonstrating the fund's ability to generate stable cash flows and create value through strategic repositioning and asset enhancements. KEAF II continues this approach, aiming to provide investors with strong risk-adjusted returns while supporting the growth and development of the education sector in the Asia Pacific region. The fund's investment strategy focuses on value-add real estate opportunities, targeting assets with potential for enhancement through strategic repositioning, development, and operational improvements. By partnering with established education operators, KEAF II aims to create a balanced portfolio of stable, brownfield, and greenfield assets across different education sub-sectors and cities. The fund's commitment to ESG principles ensures that investments contribute positively to the environment and society, aligning with Keppel's sustainability management framework. KEAF II's approach reflects a deep understanding of the education sector's dynamics and a commitment to delivering value to investors and communities alike. KEAF II's track record includes significant acquisitions and developments in key markets. In August 2023, the fund acquired a purpose-built campus in Kensington, Sydney, fully leased to the University of New South Wales on a long-term basis. This acquisition allows KEAF II to participate in the recovery of the tertiary international education sector in Australia. Additionally, the fund has entered into a partnership agreement with Precinct Properties Group to acquire an 80% stake in a purpose-built student accommodation facility in Auckland, New Zealand, slated for completion in 2028. This development will be the largest student accommodation facility in the country, comprising approximately 960 self-contained studios under a long-term lease to the University of Auckland. These strategic investments demonstrate KEAF II's commitment to enhancing its portfolio and capitalizing on the growing demand for quality education assets in the Asia Pacific region.

Investment Focus

• Established education operators
• Long-term leases
• ESG compliance

Portfolio Companies