Keppel acquires S$130m data centre in Germany

A 11,780sqm, 4-storey building is in the works.

According to a report by OCBC, Keppel DC REIT (KDCREIT) announced that it has taken steps towards its maiden acquisition in Germany. KDCREIT has entered into a forward sale and purchase agreement (SPA) for mainCubes Data Centre, a 4-storey fully fitted data centre set to be completed in 2018. The data centre will be developed to Tier III classifications, and will have a total lettable area of about 11,780sqm. The purchase consideration of the asset was placed at approximately S$130m.

KDCREIT will have to make a deposit on execution of the SPA worth 10% of the purchase price, and the remainder will be due once the building is finished. It’s a worthy investment, as KDCREIT can look forward to an estimated DPU accretion of 2.7%.

“Other benefits of this acquisition include lengthening its WALE (weighted average lease expiry) from 8.9 years to 10 years and diversifying its income streams,” notes OCBC.