Keppel DC REIT recently announced their intention to purchase a 99% interest in Kingsland Data Centre (DC) for S$295.1 million.

The deal is expected to be 100% funded by equity, and is both DPU and NAV accretive, indicating that the REIT’s share price and deal consideration amount is favourable to the REIT.

At a 6% discount to valuation of S$316.8m, the valuation cap rate is 8.25% and in line with rates for the REIT’s other data centres.

What is Kingsland Data Centre?

Kingsland Data Centre is a five-storey, purpose built, carrier-neutral colocation data centre.

It was completed in 2015 and located in Jurong. The facility was completed in phases starting from 2015.

The facility’s IT power is fully committed and committed occupancy is 84.2%, with vacancy being offices.

Funding

The acquisition of the property will be done by a private placement of 224 million new units in Keppel DC REIT …