Singapore's Keppel DC REIT enters Japan with $145 mln data centre purchase

KEPPEL DC REIT

11/07/2024 02:19

SINGAPORE, July 11 (Reuters) - Singapore-listed data
centre real estate investment trust Keppel DC REIT  KEPE.SI  and
sponsor Keppel  KPLM.SI  are set to buy a data centre in Tokyo
for 23.4 billion yen ($145 million), in the REIT's first
Japanese acquisition.
    The figure represents a 2.5% discount to the 24 billion yen
valuation of Tokyo Data Centre 1, the REIT's manager - Keppel DC
REIT Management - said in a statement on Thursday.
    The REIT's manager said Japan was Asia's second-largest data
centre hub and was set to expand at a compounded annual growth
rate of over 10% from 2024 to 2028 driven in part by the
proliferation of generative artificial intelligence.
    "Japan is a core market and the addition of Tokyo Data
Centre 1 will further strengthen our portfolio's geographical,
as well as income diversification," the REIT's manager's CEO,
Loh Hwee Long, said in the statement.
    Upon completion of the acquisition in the third quarter,
Keppel DC REIT will own 98.47% of the data centre, with Keppel
holding the remainder.
    The REIT's manager said Tokyo Data Centre 1 will be funded
through yen-denominated debt.
    
($1 = 161.4800 yen)

 (Reporting by Yantoultra Ngui; Editing by Christopher Cushing)
 ((Yantoultra.Ngui@thomsonreuters.com;))