Keppel DC REIT - CGS-CIMB Research 2023-12-18: Too Soon To Speculate On Bluesea Fall Out

• On 15 Dec 23, Keppel DC REIT (SGX:AJBU) announced it has issued a letter of demand to Guangdong Bluesea Data Development for:
  1. arrears of RMB48.3m (S$9.1m), comprising
     • sum in arrears to-date of RMB45.0m (S$8.5m) comprising 4 months' rent arrears for Guangdong Data Centre (GDC) 1, 2 & 3; and coupon pertaining to the RMB72m (S$155m) advanced payment for GDC3, due as at 15 Dec 23, and
     • - Read this at SGinvestors.io -
  2. request for a security deposit top-up of RMB32.2m (S$6.0m).
• The tenant stopped paying rent on 15 Sep 23, and the security deposit was drawn down while management and tenant negotiated an installment payment plan. The tenant was prompt with instalment payments until Oct 23, but missed the Nov 23 and Dec 23 instalment payments. See Keppel DC REIT's announcements for details.

Impact to Keppel DC REIT's distribution

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Too much ambiguity

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Natalie ONG CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2023-12-18 SGinvestors.io

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