Keppel REIT expands Singapore data centre portfolio

The acquisition strengthens Keppel DC REIT’s portfolio with immediate benefits to distribution per unit.
Keppel DC REIT will fully own two major data centres in Singapore following a $1.03 billion divestment deal.

Keppel DC REIT will acquire full ownership of two data centres in Singapore, KDC SGP 7 and KDC SGP 8, as part of a $1.03 billion divestment deal. The acquisition involves Keppel’s Connectivity Division transferring its 51% stake in a joint venture with Cuscaden Peak Investments to Keppel DC REIT. Keppel will retain operational and management roles for the facilities.

The transaction aims to bolster Keppel DC REIT’s income stability while unlocking potential growth opportunities, including rental increases and expanded capacity. CEO Loh Hwee Long highlighted the deal’s immediate benefits, describing it as accretive to distribution per unit and supportive of long-term portfolio strength.

To fund the acquisition, Keppel DC REIT announced plans for an equity fundraising effort targeting approximately S$1 billion. New units will be priced between S$2.074 and S$2.128, providing additional financial stability for the purchase.

Keppel’s share of the divestment price is estimated at S$280 million. The move further strengthens the company’s commitment to the data centre industry while maintaining a key management role within its facilities.