In case you missed it, Keppel DC REIT announced last week that it is buying two data centres in Inzai, Greater Tokyo, for S$1.37 billion. To pay for it, the REIT raised S$625 million in a private placement at S$2.10 a unit — about a 4.5% discount to the S$2.20 it last traded at before the trading halt. The units closed at S$2.24 on 7 September, which works out to a pro forma yield of roughly 4.7%. Quite a few of you have asked me what I make of it, so in this article I wanted to discuss:

• Is this Tokyo acquisition a good deal for existing unitholders?
• What does the Japanese yen have to do with it?
• Would I buy Keppel DC REIT at S$2.24?

For the record, I sold out of Keppel DC REIT a while back at around S$2.30, so I don’t hold it today. What Keppel DC REIT actually bought in Tokyo...