Keppel DC Reit to buy Tokyo data centre with parent firm for $707m

Singapore-listed real estate investment trust Keppel DC Reit said on Sept 22 it will buy a newly built data centre in Japan with parent Keppel for 82.1 billion yen (S$707 million).

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Keppel DC Reit will hold a 98.47 per cent effective interest in Tokyo Data Centre 3, a hyperscale, five-storey data centre in Greater Tokyo's Inzai City, while Keppel will hold the remaining stake.

Keppel DC Reit said it agreed to the transaction with a third party and did not name the seller.

The deal value represents a near 1.1 per cent discount to the data centre’s valuation of 83 billion yen.

The Reit said it will raise gross proceeds of $404.5 million through a non-renounceable preferential offering, with around $229.8 million to be used to finance the acquisition.

Entitled unit holders will be offered 80 new units for every 1,000 existing units held, at an issue price of $2.24 per unit.

Units of Keppel DC Reit closed up 1.27 per cent, or three cents, to $2.39 on Sept 23.

Shares of Keppel rose 1.02 per cent, or nine cents, to $8.91.