Keppel Data Centres sells KDC SGP 4 shares for $170m

Alpha DC Fund now holds a 70% stake in the data centre.

Keppel Data Centres Holding Pte Ltd (KDCH) has entered into a share purchase agreement with Thorium DC Pte. Ltd. (Thorium), a 70:30 joint venture company between the Alpha Data Centre Fund (Alpha DC Fund) and KDCH, for the transfer of the entire issued share capital of Keppel DC Singapore 4 (KDC SGP 4) for a consideration of approximately $170m.

Following the transaction, Alpha DC Fund, which is managed by Alpha Investment Partners Limited (Alpha), the private fund management arm of Keppel Capital, will hold a 70% stake in the data centre through the aforesaid joint venture with KDCH.

KDCH is a 70:30 joint venture between Keppel Telecommunications & Transportation (Keppel T&T) and Keppel Land Limited. Post-transaction, Keppel T&T will retain an effective interest of approximately 40.7% in KDC SGP 4 through KDCH's respective stakes in Thorium and the Alpha DC Fund, as at the point of this announcement.

The strategic addition of KDC SGP 4 to the Alpha DC Fund comes after completion of the fund's maiden acquisition of Keppel DC Frankfurt 1 in Germany in December 2016.

Here's more from the group:

KDC SGP 4 is strategically located in close proximity to KDCH-operated data centres in Tampines - Keppel DC Singapore 2 and 3. Featuring approximately 182,000 sq ft of gross floor area over five floors, the carrier-neutral facility achieved TOP in mid-2017, and has generated healthy interest, with more than 25% of its data centre space committed. It will be fitted-out over four phases in tandem with customer demand to Tier 3 concurrent maintainability standards.

KDC SGP 4 incorporates environmentally-friendly features into its design and construction. The facility received two green certifications in June 2017: the BCA-IMDA Green Mark Award (Platinum) for New Data Centres and the BCA Green Mark Award (Platinum) for Non-residential New Buildings.

Data centre utilisation trends in Singapore are expected to remain robust, underpinned by sustained demand from expanding technology and network content companies, as well as increasing data centre outsourcing needs from the Monetary Authority of Singapore's stringent compliance requirements. Singapore's robust infrastructure and high connectivity make it a foremost choice among many corporates for colocation.