Keppel DC REIT to acquire two data centres in Singapore for $426m

Source: Picture of 1-Net North Data Centre (1-Net North Data Centre Pte Ltd)

Singapore Exchange (SGX) Mainboard-listed Keppel DC REIT (KDCR) is proposing to acquire two local data centres for S$585.10 ($425.68 million).

The REIT is concurrently also launching a combination of a private placement, preferential offering, and debt to fund the purchase.

Keppel DC Singapore 4, one of the proposed data centres to be acquired by KDCR, was priced at S$384.90 million ($280.05 million) for a 99 per cent stake. The seller is Thorium DC Pte Ltd. The remaining one per cent stake was acquired by an entity of Keppel Data Centres Holding Pte Ltd.

The second proposed data centre, 1-Net North Data Centre, was acquired by KDCR for S$200.20 million ($145.67 million). The sellers are CityDC Pte Ltd, and WDC Development Pte Ltd.

The proposed acquisitions are expected to be completed in the fourth quarter of 2019 (4Q 2019), and are distribution per unit (DPU) accretive. The pro forma DPU is expected to increase by 9.43 per cent.

Assets under management (AUM) is also expected to increase from S$1.98 billion ($1.44 billion) to S$2.58 billion ($1.88 billion) following the completion of both the deals.

KDCR is launching a fully-funded equity fundraising exercise of approximately S$473.80 million ($344.74 million) comprising a private placement and preferential offering, as well as debt.

The equity fundraising exercise is expected to reduce KDCR’s aggregate leverage ratio from 31.90 per cent as on June 30, 2019 to 30.30 per cent, increasing the REIT’s debt headroom to pursue further opportunities.

 

 

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.