Data centres with assets in Singapore are poised to benefit from the increasing appetite for hosting and storage services in the near-term, but an increasing proliferation of submarine cables in the region is clouding the long-term view.

This was the assessment given by Shern-Ling Koh, Portfolio Manager at Principal Global Investors, when asked for his views on prospects for the various data centre REITs in Singapore.

REITs with exposures to data centres are popular among investors in Singapore as evident in the unit price of pure-play data centre landlord, Keppel DC REIT, which is currently trading at about 2.3 times to its book value as reflected in the Singapore REITs table.

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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.