Keppel DC Reit and Keppel take 90% stakes in two Japan hyperscale data centres
The weighted average rent expiry is roughly 4.5 years for Tokyo Data Centre 4 and 10.6 years for Tokyo Data Centre 5.
The Reit will take an 88.62% claim in each data centre, while Keppel, through its interest in Keppel Japan KK, are going to hold a 1.38% efficient interest.
Established in Inzai City, one of Japan’s the majority of developed hyperscale data-centre clusters, the two totally fitted, colocation assets are totally occupied by four investment-grade internet venture and IT companies clients.
Keppel DC Reit said the purchase will raise its distribution each immediately while also providing numerous avenues of long-term earnings development. The properties gain from contracted average annual rent growth of regarding 2.8%, and the in-place rental fees are approximated to be at least 30% below prevailing industry rents.
At the same time, the existing operator will retain a 10% risk in each asset, to guarantee “alignment of interests and operational continuity”, the bourse filing said.
With the acquisition, Japan’s contribution to the Reit’s portfolio leasing income enhances to around 23%, from 9% as at end-June this year.
Loh Hwee Long, CEO of the executive of Keppel DC Reit, said this broadens its network of institutional and functional partners, and strengthens its ability to source and get access to future investment prospects internationally.
The total purchase price on a 100% basis is JPY190 billion ($1.55 billion), that reaches a 2.1% discount to the properties’ assessment of JPY194 billion, said the Reit manager in a Sept 1 bourse declaring.
Keppel DC Reit will certainly therefore pay about JPY168.4 billion for its efficient rate of interest in the two data centres.
Keppel DC Reit and Keppel are collectively getting 90% reliable rate of interests in 2 property, hyperscale data centres– Tokyo Data Centre 4 and Tokyo Data Centre 5– in Greater Tokyo.
3 of the four investment-grade customers throughout both Tokyo information centres are new to the Reit’s portfolio, which expands its client base and minimizes client focus risk.
Its manager intends to finance the purchase with a mix of equity and yen-denominated debt. The deal is expected to be finished in the 4th quarter of this year.
