Keppel DC REIT has entered into a sale and purchase agreement to acquire the tenant at its property in the Netherlands, Almere Data Centre.
The acquisition was effected via a share purchase arrangement that saw the REIT’s subsidiary, KDCR Almere, acquiring the tenant, Borchveste Almere BV, for EUR1.00 (USD1.10).
The tenant’s sole business relates to a sub-lease entered into with a client for Almere Data Centre.
The acquisition was completed on the same day as the signing of the sale and purchase agreement.
The purchase price was settled in cash, and took into consideration the pro forma net asset value of the shares in Borchveste Almere BV, which was at EUR0.
The acquisition will allow Keppel DC REIT to hold a direct relationship with the tenant under the sub-lease, said its manager.
In conjunction with the acquisition, Keppel Data Centres Holding, a subsidiary of the REIT’s sponsor, has agreed to be responsible for the expenses in relation to the client.
The acquisition is not expected to have any material impact on Keppel DC REIT’s financial performance for the financial year ended 31 December 2020.