Keppel’s Connectivity Division will divest its remaining interests in two data centres in Singapore to Keppel DC REIT for $50.5 million.
Following the completion of the divestment of 10% interest in Keppel DC Singapore 3 and 1% interest in Keppel DC Singapore 4, Keppel DC REIT will hold 100% interests in two of these data centres.
These transactions are part of Keppel’s asset monetisation programme and will bring Keppel’s announced monetisation in the year to date to over $2.4 billion, says the group.
For Keppel DC REIT, these acquisitions are expected to be immediately DPU accretive and will enhance total return to unitholders. On a pro forma basis, DPU for FY2024 would increase by 0.8% from 9.451 cents to 9.525 cents.
Post acquisition, Keppel DC REIT’s aggregate leverage is expected to improve from 29.8% to 29.5%, with a debt headroom of approximately $944 million.
Keppel DC REIT will fund the acquisition from its recent preferential offering and issuance of units for the acquisition fee to Keppel DC REIT Management.
Post acquisitions, Keppel DC REIT’s assets under management (AUM) will increase by approximately 3.5% from $5.7 billion to $5.9 billion, with the proportion of Singapore assets increasing from 57.8% to 58.8% of AUM and contribution from hyperscale clients increasing by 20 basis points from 69.3% to 69.5% of rental income.
Shares in Keppel and Keppel DC REIT closed lower at $10.06 and $2.20 respectively on Dec 16.
