Keppel DC REIT said on Tuesday the company and its sponsor Keppel had agreed to buy 90% effective interest in two data centres in Tokyo for 190 billion yen ($1.19 billion).
The data centre REIT launched a private placement to raise at least S$600.0 million ($472.11 million) to finance its contribution of 168.4 billion yen for the deal.
Keppel DC REIT will hold an 88.62% effective interest in each asset and Keppel 1.38%, while the existing unnamed operator will have 10% interest.
The deal will lift Japan’s share of the REIT’s portfolio rental income to 23% from 9% reported at the end of June. Most of the REIT’s portfolio rental income currently comes from Singapore.
“In addition to immediate DPU (distribution per unit) 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,” said Loh Hwee Long, CEO of the manager of Keppel DC REIT.
Reuters
