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Keppel DC REIT, listed in Singapore, has announced the acquisition of a hyperscale data centre in Tokyo's Inzai City alongside its parent company, Keppel. The total deal value is about JPY 82.1 billion (USD 555 million), representing a small discount to its valuation of JPY 83 billion. Keppel DC REIT will hold a 98.47% effective interest in the facility, while Keppel will hold the remainder. To support the acquisition, the trust will raise SGD 404.5 million through a preferential offering. The addition is expected to enhance earnings and lift its assets under management to SGD 5.7 billion.
Singapore-based Keppel DC REIT has confirmed an agreement to purchase a major data centre in Japan in partnership with its parent company, Keppel. The transaction is valued at approximately JPY 82.1 billion, equal to about USD 555 million, and is being executed at close to a 1.1% discount to the data centre's valuation of JPY 83 billion. Advertisement
The asset, known as Tokyo Data Centre 3, is a hyperscale facility located in Inzai City within the Greater Tokyo area. It is a five-story data centre designed to serve growing demand in the region. Under the terms of the deal, Keppel DC REIT will hold an effective interest of 98.47%, while Keppel will retain the remaining share.
To partly fund the purchase, Keppel DC REIT will conduct a non-renounceable preferential offering to raise about SGD 404.5 million. Of this amount, approximately SGD 229.8 million will be directed toward financing the acquisition, with the rest to support other needs.
This deal marks the second time Keppel DC REIT has added a data centre in Japan to its portfolio. The move comes as the Asia Pacific region experiences heightened investment in digital infrastructure, driven by the sharp rise in artificial intelligence adoption and data usage.
The trust has stated that the acquisition is expected to be earnings accretive and will push its assets under management to around SGD 5.7 billion, equal to about USD 4.44 billion. While the name of the seller has not been disclosed, Keppel DC REIT confirmed that the agreement was reached with a third-party entity.
Source Reuters
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