Keppel and Keppel DC REIT have agreed to acquire a 90% stake in two Tokyo hyperscale data centres in a deal valuing the Japanese assets at JPY190bn (鈧�1bn).
Located in Inzai City, Greater Tokyo, Tokyo Data Centre 4 and Tokyo Data Centre 5 will be 88.62% owned by Keppel DC REIT, with Keppel holding a 1.38% stake via Keppel Japan KK. The seller will retain a 10% interest in each data centre.
Keppel DC REIT will pay approximately JPY168.4bn for its 88.62% effective interest in the two data centres.
Last September, Keppel and its DC REIT bought Tokyo Data Centre 3 for JPY82.1bn.
Loh Hwee Long, CEO of the manager of Keppel DC REIT, said: 鈥淭his acquisition demonstrates our disciplined approach to acquiring quality assets with multiple avenues for value creation.
鈥淚n addition to immediate DPU accretion, Tokyo Data Centre 4 and 5 provide embedded growth through contracted rent escalators and meaningful potential reversion opportunities, while further deepening our exposure to the Japan data centre market.鈥�
The manager plans to fund the acquisition using a combination of equity and JPY-denominated debt.
An earlier version of this article incorrectly identified Colt Data Centre Services as the seller. The seller鈥檚 identity was not disclosed.
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