Keppel DC REIT secures full ownership of key data centres in Singapore (updated)

KEPPEL DC REIT

19/11/2024 01:19

(Adds details from paragraph 2 onwards)
       Nov 19 (Reuters) - Singapore's Keppel  KPLM.SI  will
spin off its data centre joint venture (JV) to unit Keppel DC
REIT  KEPE.SI  for a total gross divestment price of S$1.38
billion ($1.03 billion), the two companies said on Tuesday.
    The JV between Keppel's Connectivity Division and Cuscaden
Peak Investments owns the Keppel Data Centre Campus in
Singapore, comprising two operational centres - KDC SGP 7 and
KDC SGP 8.
    Keppel's share of the total gross divestment price, which
includes the estimated consideration for Keppel's 51% stake in
the JV should the call option be exercised, will be about S$280
million.
    Keppel DC REIT will have full ownership of data centres KDC
SGP 7 and KDC SGP 8, while Keppel will maintain its operational
and management roles for both, the companies said in a joint
statement.
    "These assets will not only enhance our portfolio's income
resilience but also allow us to capture potential upside from
rental uplifts and capacity expansion," Keppel DC REIT CEO Loh
Hwee Long said. 
    The proposed acquisition will deliver strong positive cash
flows and be immediately accretive to distribution per unit,
Long said.
    Separately, Keppel DC REIT said it was launching an equity
fundraising placement aiming for about S$1 billion in proceeds,
with each new unit priced between S$2.074 and S$2.128.
    
($1 = 1.3388 Singapore dollars)

 (Reporting by Roushni Nair in Bengaluru; Editing by Subhranshu
Sahu)
 ((Roushni.Nair@thomsonreuters.com;))