Keppel DC Reit to buy Kingsland Data Centre for $295.1m

The acquisition aims to cater to multinational demand for data centre space.

Keppel DC REIT has entered into a conditional sale and purchase agreement for the acquisition of 99% interest in Kingsland Data Centre at an agreed value of $295.1m. 

Located in Jurong, Kingsland Data Centre is a five-storey data centre hosting leading internet enterprise and IT services clients, according to a press release. The space has 98,769 sq ft of net lettable area and a committed occupancy of 84.2%.

The facility, which will be renamed Keppel DC Singapore 5 (KDC SGP 5), aims to cater to strong demand from multinational firms for quality data centre space, according to Keppel DC REIT Management CEO Chua Hsien Yang.

“The addition of KDC SGP 5 will allow Keppel DC REIT to establish a strategic presence in the western part of Singapore and diversify its offering to clients. KDC SGP 5 will boost the REIT's footprint in Singapore to nearly 300,000 sq ft of aggregate lettable area."

Also read: Keppel DC REIT buys German data centre for $135.63m 

The acquisition will be funded by the net proceeds raised from the private placement of 224m new Units in Keppel DC REIT and the remaining net proceeds of its pro-rata preferential offering that was launched in October 2016. The private placement aims to raise gross proceeds of approximately $303.1m.