Keppel DC REIT Secures Full Ownership of Key Data Centres in Singapore
Monday, Nov 18, 2024 8:32 pm ET
1min read Keppel DC REIT, a leading data centre real estate investment trust (REIT) in Asia, has announced its acquisition of two strategic data centres in Singapore, further strengthening its market position and expanding its portfolio. The acquisition, valued at S$1.38 billion, includes Keppel DC Singapore 7 (KDC SGP 7) and Keppel DC Singapore 8 (KDC SGP 8), both located within the Keppel Data Centre Campus at Genting Lane.
The acquisition of these two data centres is expected to deliver a significant 8.1% distribution per unit (DPU) accretion for Keppel DC REIT, expanding its assets under management (AUM) by 36% to S$5.2 billion. The REIT's portfolio will now comprise 25 data centres across Asia Pacific and Europe, with a total lettable area of approximately 1,410,497 sq ft.
The strategic location of these data centres within the Keppel Data Centre Campus in Singapore, Asia's top data centre hub, allows Keppel DC REIT to serve a wider range of clients, including global hyperscalers from the cloud services, internet enterprise, and telecommunications sectors. This acquisition further solidifies Keppel DC REIT's market position as one of the largest owners of stabilised data centres in Singapore.
Post-acquisition, Keppel DC REIT's pro-forma occupancy rate is expected to improve from 93.2% to 94.1%, with a portfolio weighted average lease expiry (WALE) by leased lettable area increasing from 7.8 years to 8.9 years. The acquisitions will also strengthen the income resilience and stability of Keppel DC REIT's portfolio.
The acquisition of KDC SGP 7 and KDC SGP 8 is expected to be completed in stages by end-2025, subject to approvals by the relevant authorities. Keppel DC REIT will acquire an initial 49% interest in the Keppel JV, as well as subscribe for two new classes of securities issued by the Keppel JV.
In conclusion, Keppel DC REIT's acquisition of KDC SGP 7 and KDC SGP 8 is a strategic move that bolsters its market position, expands its portfolio, and delivers significant DPU accretion. The REIT's diverse regional presence in Singapore enhances its ability to serve a wider range of clients and improves income resilience and stability. As the demand for data centres continues to grow, Keppel DC REIT is well-positioned to capitalise on emerging opportunities and drive long-term growth.
The acquisition of these two data centres is expected to deliver a significant 8.1% distribution per unit (DPU) accretion for Keppel DC REIT, expanding its assets under management (AUM) by 36% to S$5.2 billion. The REIT's portfolio will now comprise 25 data centres across Asia Pacific and Europe, with a total lettable area of approximately 1,410,497 sq ft.
The strategic location of these data centres within the Keppel Data Centre Campus in Singapore, Asia's top data centre hub, allows Keppel DC REIT to serve a wider range of clients, including global hyperscalers from the cloud services, internet enterprise, and telecommunications sectors. This acquisition further solidifies Keppel DC REIT's market position as one of the largest owners of stabilised data centres in Singapore.
Post-acquisition, Keppel DC REIT's pro-forma occupancy rate is expected to improve from 93.2% to 94.1%, with a portfolio weighted average lease expiry (WALE) by leased lettable area increasing from 7.8 years to 8.9 years. The acquisitions will also strengthen the income resilience and stability of Keppel DC REIT's portfolio.
The acquisition of KDC SGP 7 and KDC SGP 8 is expected to be completed in stages by end-2025, subject to approvals by the relevant authorities. Keppel DC REIT will acquire an initial 49% interest in the Keppel JV, as well as subscribe for two new classes of securities issued by the Keppel JV.
In conclusion, Keppel DC REIT's acquisition of KDC SGP 7 and KDC SGP 8 is a strategic move that bolsters its market position, expands its portfolio, and delivers significant DPU accretion. The REIT's diverse regional presence in Singapore enhances its ability to serve a wider range of clients and improves income resilience and stability. As the demand for data centres continues to grow, Keppel DC REIT is well-positioned to capitalise on emerging opportunities and drive long-term growth.
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