Eindhoven Campus (Keppel DC REIT)

Keppel DC REIT has acquired a 100% interest in a freehold property with two shell and core data centres inn Eindhoven, the Netherlands, for EUR 37.2 million (USD44 million).

The consideration is above the EUR35.4 million valuation issued by CBRE in July 2021.

The property was acquired from a fund affiliated with MCAP Global Finance (UK) LLP, the European subsidiary of New York headquartered Marathon Asset Management LP.

The property, which is located at Dillenburgstraat 25A-25E, 25E1, 25F, 25G and 25J-25M, 5652 AM, will be named Eindhoven Campus.

It is Keppel DC REIT’s third asset in the Netherlands, and further strengthens its foothold in this key data centre market in Europe, said the REIT.

The asset has a combined net lettable area of approximately 83,841 square feet and is fully leased with a WALE of 6.8 years by leasable area and 8.5 years by rental income.

The data centre space is leased to a global leading IT services provider.

"Being one of the top four data centre markets in Europe and the eighth largest data centre market globally, the Netherlands is a strategic market for Keppel DC REIT”, said Anthea Lee, CEO of the REIT’s manager.

The Netherlands’ data centre market is expected to register a compound annual growth rate of 5.3% over the forecast period of 2021 to 2026, said Keppel DC REIT.

The acquisition is expected to be accretive to Keppel DC REIT's distribution per unit, and is funded by the proceeds from the recent equity fund raising and by debt denominated in Euro.

Once the asset is inducted, Keppel DC REIT’s portfolio occupancy rate will improve from 98.0% as at 30 June 2021 to 98.1%, while weighted average lease expiry will remain unchanged at 6.5 years.

Keppel DC REIT was last done on the Singapore Exchange at SGD2.54, which currently implies a distribution yield of 3.88% according to data compiled on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.