Singapore's Keppel DC REIT to buy Tokyo data centre for $555 million with parent Keppel

KEPPEL DC REIT

22/09/2025 16:52

Sept 22 (Reuters) - Singapore-listed data centre real estate investment trust  Keppel DC REIT KEPE.SI said on Monday it will buy a data centre in Tokyo with parent Keppel KPLM.SI for 82.1 billion Japanese yen ($555.29 million).

Keppel DC REIT will hold a 98.47% effective interest in Tokyo Data Centre 3, a hyperscale, five-story data centre in Greater Tokyo's Inzai City, while Keppel will hold the remaining stake.

The deal value represents a near 1.1% discount to the data centre's valuation of 83.0 billion Japanese yen.

The firm said it will raise gross proceeds of S$404.5 million through a non-renounceable preferential offering, with around S$229.8 million to be used to finance the acquisition.

The deal marks Keppel DC REIT's second addition of a data centre in Japan to its portfolio, as the Asia Pacific region witnesses a boom in spending on data centre infrastructure amid the AI race.

The company expects the purchase to be earnings accretive, while increasing its assets under management to S$5.7 billion ($4.44 billion).

Keppel DC REIT said it agreed the transaction with a third party and did not name the seller.

($1 = 147.8500 yen)

($1 = 1.2829 Singapore dollars)

 (Reporting by Nichiket Sunil in Bengaluru; Editing by Tasim Zahid)

 ((Nichiket.Sunil@thomsonreuters.com;))