Keppel and Keppel DC REIT’s manager have announced that the relevant authorities have granted conditional approval for a 10-year land tenure lease extension to July 15 2050 for the Keppel Data Centre Campus at Genting Lane in Singapore, subject to certain conditions.
The land tenure extension forms part of the divestment of the two AI-ready hyperscale data centres, Keppel DC Singapore 7 (KDC SGP 7) and Keppel DC Singapore 8 (KDC SGP 8), in the Keppel Data Centre Campus to Keppel DC REIT which was announced in 2024. The JTC Cover Letter states that certain conditions include the development of KDC SGP 9 by Memphis 2. When all the conditions set out in the JTC Offer Letter are met, JTC will issue a separate letter to grant the Land Tenure Lease Extension. Keppel DC REIT does not hold any stake in either KDC SGP 9 or Memphis 2 and hence will not be responsible for the costs of construction KDC SGP 9.
As part of the transaction announced in November 2024, Keppel DC REIT will pay the final sum of $350 million out of the total sale consideration of $1.38 billion to the sellers, a joint venture between Keppel’s Connectivity Division and Cuscaden Peak Investments Private Limited, for securing the 10-year land tenure lease extension.
Keppel’s share of the $350 million is around $70.9 million, based on Keppel’s effective stake in the Keppel JV, which includes both its interests in the Keppel JV and indirect interests via Alpha Data Centre Fund.
