Keppel and Keppel DC REIT have agreed to acquire a 90% stake in two Tokyo hyperscale data centres from Colt Data Centre Services in a deal valuing the Japanese assets at JPY190bn (€1bn).
Located in Inzai City, Greater Tokyo, Tokyo Data Centre 4 and Tokyo Data Centre 5 will be 88.62% owned by Keppel DC REIT, with Keppel holding a 1.38% stake via Keppel Japan KK. Colt DC will retain a 10% interest in each data centre.
Keppel DC REIT will pay approximately JPY168.4bn for its 88.62% effective interest in the two data centres.
Last September, Keppel and its DC REIT bought Tokyo Data Centre 3 for JPY82.1bn.
Loh Hwee Long, CEO of the manager of Keppel DC REIT, said: “This acquisition demonstrates our disciplined approach to acquiring quality assets with multiple avenues for value creation.
“In addition to immediate DPU accretion, Tokyo Data Centre 4 and 5 provide embedded growth through contracted rent escalators and meaningful potential reversion opportunities, while further deepening our exposure to the Japan data centre market.”
The manager plans to fund the acquisition using a combination of equity and JPY-denominated debt.
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