Investors swarm as Keppel DC REIT sells 261.1m shares at $0.93 per share

53,763,000 units are offered to the public.

With a market capitalisation at listing of approximately S$821.1 million, Keppel DC REIT will be the first data centre real estate investment trust ("REIT") to be listed in Asia, making it a milestone listing on the SGX-ST.

According to a media release by Keppel, as the first data centre REIT listed in Asia, Keppel DC REIT will give investors a unique opportunity to invest, through the IPO Portfolio, in the rising demand for data centres, bolstered by strong fundamental growth drivers such as a rise in data creation and storage needs, the growing adoption of cloud computing, increasing compliance and regulatory requirements on data security, and increasing outsourcing of data centre requirements.

Keppel DC REIT offers investors a distribution yield of 6.8%2 in Forecast Year 2015 and 7.1% in Projection Year 2016 with a distribution growth of 4.5%2, driven by built-in rental escalations as well as the renewal or commencement of leases and co-location arrangements.

261,138,000 Units are being offered, subject to an Over-Allotment Option, at the Offering Price of $0.93 per unit.

The Offering consists of (i) an international placement of 207,375,000 Units to investors, including institutional and other investors in Singapore, and (ii) an offering of 53,763,000 Units to the public in Singapore.

The Placement Tranche drew strong demand from institutional investors. The indications of interest received were valued at S$4.7 billion, representing approximately 24.4 times of the Placement Tranche.

The Public Offer opened at 9.00pm on Friday, 5 December 2014 and will close at 12.00pm on Wednesday, 10 December 2014. Units in Keppel DC REIT are expected to commence trading on the SGX-ST at 2.00pm on Friday, 12 December 2014.