Singapore, November 19 — Keppel DC REIT has announced the acquisition of full ownership of the Keppel Data Centre Campus in Singapore for a total gross divestment price of S$1.38 billion (US$1.03 billion). This strategic move includes two operational centres, KDC SGP 7 and KDC SGP 8, further strengthening Keppel’s presence in the data centre sector. Keppel’s operational and management roles will remain intact.
Keppel DC REIT’s acquisition follows its parent company Keppel’s decision to spin off its data centre joint venture with Cuscaden Peak Investments. The deal secures full ownership of the Keppel Data Centre Campus, consisting of KDC SGP 7 and KDC SGP 8. This move aligns with Keppel DC REIT’s strategy to enhance its portfolio’s income resilience and capture future growth opportunities.
Total Deal Value
The gross divestment price for the acquisition is S$1.38 billion (US$1.03 billion). Keppel’s share, including a 51% stake in the joint venture, amounts to S$280 million (US$206 million).
Strategic Importance
The acquisition enhances portfolio resilience, leveraging rental income potential and capacity expansion for the two data centres.
Equity Fundraising Plan
Keppel DC REIT is launching an equity fundraising placement, aiming to raise approximately S$1 billion by pricing new units between S$2.074 and S$2.128 each.
Management Continuity
Keppel will retain its operational and management roles for the two data centres, ensuring continuity in operations.
CEO Statement
Keppel DC REIT CEO Loh Hwee Long emphasized the immediate financial benefits, stating, “These assets will enhance income resilience and deliver accretive distribution per unit.”
This acquisition reflects the growing demand for robust data infrastructure in the region. The deal highlights Singapore’s role as a leading data centre hub and Keppel DC REIT’s strategy to capitalize on this trend, benefiting both institutional and retail investors.
Keppel DC REIT has acquired full ownership of two major data centres in Singapore for S$1.38 billion (US$1.03 billion). The move strengthens its portfolio with immediate cash flow benefits and prepares the company for future growth. Keppel will continue to oversee operations, ensuring continuity.
Source: Reuters (2024)
Keywords: Keppel DC REIT, Data Centre Ownership, Singapore Acquisition
