Concurrently secures recurring income stream for project and facility management services

Keppel Data Centres Holding Pte Ltd (KDCH), a joint venture between Keppel Telecommunications & Transportation Ltd (Keppel T&T) and Keppel Land Limited will unlock value with the divestment of 90% of Keppel DC Singapore 3 (KDC SGP 3), formerly T27 or Keppel Datahub 2, to Keppel DC REIT via share sale for an aggregate consideration of approximately $141 million.

The consideration for the divestment was arrived at on a willing-buyer and willing-seller basis and takes into account independent valuations of the property, both external and shareholder loans, and includes a rental income support of $1.58 million. The transaction is expected to unlock approximately $121 million in cash for KDCH.

KDC SGP 3 is a five-storey, carrier-neutral data centre in Singapore with 52,615 sq ft of high-availability data centre colocation space. Built to energy-efficient specifications, the facility was the first data centre in Singapore to receive the BCA-IDA Green Mark Platinum Award for New Data Centres, the highest green accolade from the Building and Construction Authority of Singapore and the Infocomm Development Authority of Singapore.

Leveraging Keppel T&T's strong track record in building, managing and operating high-quality data centres, a wholly-owned subsidiary of KDCH will enter into an exclusive lease agreement and facility management agreement with Keppel DC REIT for a period of 10 years as part of the transaction.

Mr Thomas Pang, CEO of Keppel T&T said, 'The transaction unlocks value from KDC SGP 3, and recycles capital for Keppel T&T to pursue its growth strategies across its investments in logistics, data centre and other businesses, allowing it to maximise overall returns for shareholders.'

Mr Wong Wai Meng, CEO of Keppel Data Centres added, 'Our extensive experience as a data centre operator and the trusted partnerships we have built with our customers have paved the way for Keppel T&T's data centre division to secure recurring income streams as facilities manager of the assets, even after they are divested to Keppel DC REIT.'

Keppel DC REIT will finance its acquisition via the net proceeds of approximately $275.3 million from a fully underwritten preferential offering of 242.0 million new Units on the basis of 274 new Units for every 1,000 existing Units in Keppel DC REIT held as at 5.00 p.m. on Tuesday, 25 October 2016. This is subject to and conditional upon, among others, the approval of the unitholders of Keppel DC REIT at an extraordinary general meeting, to be announced at a later date, and approvals from the relevant authorities.

Keppel T&T, through its wholly-owned subsidiary, Keppel DC Investment Holdings Pte Ltd, intends to subscribe for its pro-rata entitlement under the preferential offering. This will enable Keppel T&T to maintain its 30.1% unitholding interest in Keppel DC REIT upon completion of the proposed acquisition, and is in line with Keppel T&T's commitment as a sponsor to support Keppel DC REIT, and enable it to continue participating in the REIT's growth.

- END -

For further information, please contact:

Media Relations

Ang Lai Lee (Mr)
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: +65 6413 6427
Email: lailee.ang@kepcorp.com

Investor Relations

Ivana Chua (Ms)
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: +65 6413 6436
Email: ivana.chua@kepcorp.com

About Keppel Data Centres Holding Pte Ltd
Keppel Data Centres Holdings was formed in January 2011 as a 70-30 joint venture company between Keppel T&T and Keppel Land to consolidate their data centre assets and position the business for further growth. The company currently manages and operates more than 190,000 sq ft of data centre and business continuity and disaster recovery centre space in Singapore.

http://www.keppeldatacentres.com

About Keppel Telecommunications & Transportation Ltd
Keppel Telecommunications & Transportation Ltd (Keppel T&T), is a subsidiary of Keppel Corporation Limited, a leading company listed on the Main Board of the SGX-ST with core businesses in offshore and marine, infrastructure and property.

Keppel T&T is also listed on the Main Board of SGX-ST with logistics and data centre operations in Europe and Asia-Pacific. In Singapore, wholly owned subsidiary Keppel Logistics has more than 40 years of experience in offering customised integrated logistics solutions. It currently also operates logistics facilities with advanced IT infrastructure in China, Hong Kong, Malaysia, Indonesia, Vietnam and Australia.

Keppel Data Centres, Keppel T&T's data centre division has a track record of more than a decade in owning, developing and managing high quality carrier-neutral data centre facilities that support mission-critical computer systems. Keppel T&T is also the sponsor of Keppel DC REIT, the first data centre Real Estate Investment Trust (REIT) listed in Asia and on the SGX-ST. Together with assets owned through Keppel DC REIT, Keppel T&T has a global portfolio of 15 data centres located in key data centre hubs across Asia Pacific and Europe.

http://www.keppeltt.com.sg/

About Keppel Land Ltd
One of Asia's leading property companies, Keppel Land, a subsidiary of Keppel Corporation, is recognised for its sterling portfolio of award-winning residential developments and investment-grade commercial properties, as well as high standards of corporate governance and transparency.

The Company is geographically diversified in Asia, with Singapore and China as its core markets, as well as Vietnam and Indonesia as its growth markets.

Keppel Land is Asia's premier home developer, with a pipeline of about 70,000 homes in Singapore and overseas. The Company is also a leading prime office developer in Singapore, contributing to enhancing the city's skyline with landmark developments such as Marina Bay Financial Centre, Ocean Financial Centre and One Raffles Quay. Keppel Land is committed to grow its commercial portfolio in key Asian cities such as Shanghai, Beijing and Tianjin in China, Ho Chi Minh City in Vietnam, Jakarta in Indonesia, Yangon in Myanmar and Manila in the Philippines. To strengthen its retail capabilities, it acquired a 75% stake in retail management company, Array Real Estate, which has since been renamed Keppel Land Retail Management.

Beyond Asia, Keppel Land has an office building in London and a residential development in New York.

http://www.keppelland.com

Keppel Land Ltd. published this content on 17 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 October 2016 12:28:02 UTC.

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