Keppel DC REIT property, Intellicentre 2. (Photo: Keppel DC REIT)

Keppel DC REIT is building a new extension to its data centre within the Macquarie Business Park precinct in Sydney to capitalise on the expected demand for such services in Australia.

The development will be undertaken by Macquarie Telecom, the master lessee of the REIT's existing shell and core data centre, Intellicentre 2 Data Centre.

Once the extension is complete, Macquarie Telecom will be the master lessee of the new extension.

It will then be known as Intellicentre 3 East Data Centre, and feature at least 86,000 square feet of net lettable area upon its completion.

Once the extension is complete, a new 20-year triple-net lease with Macquarie Telecom, incorporating both Intellicentre 2 Data Centre and Intellicentre 3 East Data Centre shell and core buildings, will also commence.

The lease will include built in annual rental escalations with renewal options.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.