Keppel seals $59.7m data centre acquisition in Europe

It is located at Cardiff, Wales in UK.

As it aims to strengthen its data centre portfolio, Keppel DC REIT Management Pte. Ltd. has acquired the shell and core building of a data centre in Cardiff, the capital city of Wales within the United Kingdom from Cardiff Data Investments Ltd.

The purchase consideration for the said asset sits at $59.7 million.

Located within the Celtic Gateway Business Park, the facility comprises a two-storey data centre that is connected to a three-storey office block.

The site is on an approximately 26,000 sqm of freehold land, with the facility having a total lettable area of around 7,380 sqm. It was completed in 2003.

According to Keppel DC REIT Management CEO Chua Hsien Yang, the acquisition further enhances the portfolio's stability through income and geographical diversification.

"The strategic addition of this facility presents an attractive opportunity for Keppel DC REIT to participate in Cardiff's growth as one of the emerging digital clusters that hosts an internet exchange point outside of London. The city is undergoing a digital transformation, driven by strong government support and a growing business community," he said.

The acquisition marks Keppel DC REIT's fourth acquisition since its listing in end-2014.

Chua said the trust will continue to pursue income-producing assets from third parties that will complement its portfolio profile and enhance total returns to its investors.