- Keppel DC REIT announced that it has entered into a purchase and sale agreement with an unrelated third-party vendor for the acquisition of a 98.47% effective interest in a shell and core data centre located in West Tokyo, Japan.
- - Read this at SGinvestors.io -
- Management said that this is comparable to other shell and core data centre transactions in the Greater Tokyo region. Furthermore, the purchase consideration represents a slight discount of 2.5% to an independent valuation.
- Upon completion of this proposed acquisition, this would mark Keppel DC REIT’s maiden entry into the Japanese data centre market, which is the second largest data centre hub in Asia.
Room for positive rental reversions but only over the medium term
- - Read this at SGinvestors.io -
- We believe near-term growth would be limited as the lease does not come with annual rental escalations and there are still approximately seven years remaining on the lease term. However, over the medium term, there is room for a potential rental uplift, given that the passing rent of the property is 10- 15% below market rents, coupled with positive supply and demand dynamics in the market.
Slight DPU accretion on pro forma basis, but aggregate leverage ratio to increase by 3.2 ppt to 39.4%
- Read more at SGinvestors.io.
