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Keppel DC REIT acquires second Dublin data centre for $101.3 mil

By Stanislaus Jude Chan

/ The Edge Singapore |

September 13, 2017 2:55 PM SGT

SINGAPORE (Sept 13): Keppel DC REIT announced Wednesday that it has acquired its second colocation data centre in Dublin, Ireland for a total of 66.0 million euros ($101.3 million).

Keppel DC REIT on Tuesday entered into a sale and purchase agreement for the entire 100% interest in Dataplex Datacentres, which holds the property located at Unit 10 of the Ballycoolin Business and Technology Park in Dublin, for 58.5 million euros.

In addition, the REIT entered into a contract for sale to acquire the 999-year leasehold interest in the property from Ficepot for 7.5 million euros. In a filing to SGX, Keppel DC REIT says the acquisition is funded entirely by debt, and has been completed on the same day of the agreement. Post completion, the REIT’s aggregate leverage is expected to increase to 32.4%, from 27.7% as at end-June.

An energy-efficient carrier-neutral colocation data centre, B10 Data Centre has a weighted average lease expiry (WALE) of approximately 11.0 years. The facility has a lettable area of approximately 25,200 sq ft, and is 87.3% leased to leading global internet enterprise, IT services and telecommunications clients.

The manager of the REIT says the acquisition is immediately accretive to Keppel DC REIT’s distribution per unit (DPU), and is in line with its growth strategy of acquiring quality income-producing data centre properties that enhance total return to unitholders and increase potential opportunities for future income and capital growth.

It adds that the acquisition will enhance Keppel DC REIT’s portfolio resilience, and strengthen its presence in a key European data centre market that is expected to benefit from Brexit.

“This asset is a strategic addition to Keppel DC REIT’s portfolio given its strong tenant profile with a long WALE that provides income stability,” says Chua Hsien Yang, CEO of Keppel DC REIT Management.

“Apart from enhancing its offering in a key data centre hub, the REIT will be able to reap operational synergies from its existing data centre, Keppel DC Dublin 1,” he adds. Following the acquisition, Keppel DC REIT’s assets under management has increased to approximately $1.5 billion.

This story, written by Stanislaus Jude Chan, first appeared in The Edge Singapore.

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