Keppel DC REIT Acquires Two Data Centers for S$1.38 Billion

Keppel Corporation is divesting two hyperscale data centers in Singapore to Keppel DC REIT for S$1.38 billion, marking a significant transaction in Southeast Asia's data center market. The deal involves two operational centers and a vacant plot for future development, enhancing Keppel DC REIT's assets under management by 36% to S$5.2 billion. Post-divestment, Keppel will continue to manage the facilities and earn recurring income from asset management. To finance the acquisition, Keppel DC REIT plans to raise at least S$1 billion through a private placement and preferential offering, with unit prices set between S$2.074 and S$2.128. This move is expected to increase distribution per unit and generate strong cash flows for the REIT. The transaction is projected to finalize by the end of 2025.