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 DC Singapore 8 in Singapore, cover associated costs for a 30-year land lease extension for Keppel DC Singapore 1, as well as for debt repayment purposes.
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