Keppel DC REIT property, Almere Data Centre. (Photo: Google Maps)Keppel DC REIT property, Almere Data Centre. (Photo: Google Maps)

Keppel DC REIT has acquired a data centre located in Bracknell, UK for GBP57.0 million.

The property has been acquired from a Fiera Real Estate and SEDCO Capital joint venture.

It is fully leased on an existing triple net lease on a shell and core basis to a leading telecommunications company, till 2039.

The acquisition is expected to be accretive to Keppel DC REIT’s distribution per unit.

Post- acquisition, Keppel DC REIT will increase the proportion of its shell and core data centre leases from approximately 18.3% to 20.9% by assets under management.

The REIT intends to fund the acquisition, which is expected to be completed in 1Q 2022, with part of the proceeds from the recent placement, and external financing.

Post completion, Keppel DC REIT’s aggregate leverage is expected to increase from 36.4% as at 30 September 2021 to 38.2%.

The property will improve Keppel DC REIT’s portfolio’s lease profile by increasing the weighted average lease expiry (WALE) from 7.7 years to 8.1 years.

The portfolio occupancy will remain healthy at 98.3%.

With the acquisition of London Data Centre, Keppel DC REIT will have a total of 21 data centres in Asia-Pacific and Europe.

Keppel DC REIT was last done on the Singapore Exchange (SGX) at SGD2.41, which presently implies a distribution yield of 4.09% according to data on the Singapore REITs table.

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.