Keppel : DC REIT acquires second data centre in Dublin, Ireland

Keppel DC REIT has acquired B10 Data Centre, its second colocation data centre in Dublin, Ireland, a key data centre hub in Europe. The agreed value of this asset is EUR 66.0 million (approximately $101.3 million).

B10 Data Centre is an energy-efficient carrier-neutral colocation data centre. It has a long weighted average lease expiry (WALE) of approximately 11.0 years and is 87.3% leased to leading global internet enterprise, IT services and telecommunications clients. The facility is located within the Ballycoolin Business and Technology Park in Dublin, approximately 12 kilometres from the Dublin city centre, and is well-served by major transportation modes. The data centre started operations in 2013 and offers approximately 25,200 sq ft of lettable area.

Mr Chua Hsien Yang, CEO of Keppel DC REIT Management Pte. Ltd., said, 'This asset is a strategic addition to Keppel DC REIT's portfolio given its strong tenant profile with a long WALE that provides income stability. Apart from enhancing its offering in a key data centre hub, the REIT will be able to reap operational synergies from its existing data centre, Keppel DC Dublin 1.'

According to EY, Dublin has emerged as one of the leading financial centres in Europe for banking and financial services companies looking to relocate from the United Kingdom post-Brexit. Separately, BroadGroup had also cited Ireland as the most attractive location in Europe for data centres, noting the entry of hyperscale and large-scale data centre players around Dublin.

The acquisition is immediately accretive to Keppel DC REIT's Distribution per Unit (DPU). The addition of the new facility will further diversify the REIT's income stream, while its portfolio WALE remains long at approximately 9.4 years.

The acquisition has been completed on the same day and is funded by debt. Post completion, the REIT's aggregate leverage is expected to increase from 27.7% to 32.4%. Assets under management has increased to approximately $1.53 billion with aggregate lettable area of approximately 917,240 sq ft across 13 data centres.

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About Keppel DC REIT (www.keppeldcreit.com)

Listed on 12 December 2014, Keppel DC REIT is the first pure-play data centre REIT listed in Asia and on the Singapore Exchange (SGX-ST).

Keppel DC REIT's investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate related assets, with an initial focus on Asia Pacific and Europe.

Its current portfolio comprises 13 high-quality data centres strategically located in key data centre hubs. With an aggregate lettable area of approximately 917,240 sq ft, the portfolio spans nine cities in seven countries in Asia Pacific and Europe.

Keppel Telecommunications & Transportation Ltd (Keppel T&T), the Sponsor of the REIT, has also granted Rights of First Refusal (ROFR) to the REIT for future acquisition opportunities of its data centre assets.

The REIT is managed by Keppel DC REIT Management Pte. Ltd.. Keppel Capital Holdings Pte. Ltd. (Keppel Capital) has a 50% interest in the Manager, with the remaining interest held by Keppel T&T. Keppel Capital is a premier asset manager in Asia with assets under management of approximately $26 billion in real estate, infrastructure and data centre properties in key global markets.

The Manager's key objectives are to provide the REIT's Unitholders with regular and stable distributions, as well as achieve long-term growth while maintaining an optimal capital structure. 

Important Notice

This Announcement is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units.

This Announcement may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies and venues for the sale or distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager's view of future events. The past performance of Keppel DC REIT and the Manager are not necessarily indicative of the future performance of any of them.

The value of Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager, or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.

Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (SGX-ST). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.