Keppel has announced the acquisition of Tokyo Data Centre 1. Keppel DC REIT Management, alongside Keppel, has entered into an agreement to acquire a 100 percent interest in a shell and core data centre located in Tokyo, Japan, for JPY 23.4 billion, marking its entry into the Japanese market. The purchase price represents a 2.5 percent discount to the property's valuation of JPY 24.0 billion, the company said in a recent press release.
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Acquisition Details and Financial Impact
Keppel DC REIT will have a 98.47 percent interest in the property, while the remaining 1.53 percent will be held by Keppel. Funded by debt, the acquisition, expected to conclude in 3Q 2024, will enhance Keppel DC REIT's portfolio, increasing occupancy from 98.1 percent to 98.2 percent and extending the weighted average lease expiry (WALE) from 6.5 to 6.6 years.
Tokyo Data Centre 1
Tokyo Data Centre 1, a freehold multi-storey facility completed in 2019, has a net lettable area of 190,166 sq ft and is master leased to a Fortune Global 500 company with approximately seven years remaining on the lease term, the official release said. The property is located in West Tokyo, built to the latest seismic standards, and forms part of a primary data centre hub.
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Keppel DC REIT said, "Our first acquisition in Japan, one of the largest and fastest-growing data centre markets in Asia, demonstrates our ability to acquire quality assets in key data centre hubs. Japan is a core market and the addition of Tokyo Data Centre 1 will further strengthen our portfolio’s geographical as well as income diversification."
Portfolio Expansion
Post-acquisition, Keppel DC REIT will manage 23 data centres across 10 countries, with assets under management rising to USD 3.8 billion.
