SGX-listed Keppel DC REIT, and its sponsor, Keppel, are acquiring Tokyo Data Centre 3, a newly built hyperscale data centre located in Inzai City, Greater Tokyo, for JPY82.1bn (€470m) from an unrelated third party.
Keppel DC REIT will have a 98.47% effective interest in the data centre, while the remaining 1.53% effective interest will be held by Keppel.
Keppel DC REIT has issued a preferential offering to raise S$404.5m (€267m) to help fund the acquisition.
The acquisition would add a second data centre asset in Japan to Keppel DC REIT’s portfolio.
Loh Hwee Long, CEO of Keppel DC REIT Management, the manager of Keppel DC REIT, said: “The accretive acquisition of Tokyo Data Centre 3 is aligned with our value creation strategy to pursue hyperscale opportunities in established data centre hubs.
“The favourable demand-supply dynamics for data centres in Japan and the country’s strategic position as an interconnect location between Asia and the Americas make it a compelling market for long-term growth.”
Proceeds from the preferential offering will be used to partially fund the acquisition of Tokyo Data Centre 3, finance an asset enhancement initiative at Keppel DCs in Singapore, cover associated costs for a 30-year land lease extension for Keppel DC Singapore, as well as for debt repayment purposes.
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