Keppel unit sells 51% stake in DataCentre One for $102.9m

The proceeds will be used for other acquisitions and refinancing purposes.

Keppel Infrastructure Trust’s (KIT) wholly-owned subsidiary, CityDC, is divesting its 51% stake in DataCentre One to Keppel DC REIT for a consideration of $102.9m, according to an announcement by Keppel Infrastructure Fund Management (KIFM).

Keppel will also acquire the remaining 49% held by WDC Development, the release added. The consideration is based on the adjusted net asset value of DataCentre One, which is apportioned between CityDC and WDC in their respective shareholding proportion.

DataCentre One is a joint venture company that was formed in June 2014 between CityDC and WDC to develop, build and lease 1-Net North Data Centre, a five-storey purpose-built facility located just outside the Woodlands Regional Centre. The agreed value for 1-Net North DC is $200.2m. CityDC launched a tender for the sale of 1-Net North DC in June.

KIT will use the divestment proceeds for other acquisitions as well as for refinancing purposes and working capital needs, shared Matthew Pollard, CEO of Keppel Infrastructure Fund Management, the trustee-manager of KIT.

KIT will use part of the consideration for the repayment of DataCentre One's loans, amongst others, the release added. Accordingly, the estimated net proceeds to be received by KIT is $51.3m.

When completed, the deal is expected to increase KIT's earnings per unit for the financial year ending 31 December 2019. It is not expected to have a material impact on the net tangible assets, funds from operations and distribution per Unit of KIT for the financial year ending 31 December 2019.