Link: https://links.sgx.com/1.0.0/corporate-announcements/174HI5HW051D47VW/622eee16419576c7e96fec6e3090ee131edcd24c714d83201055b9ee47993c01

Summary:

• Keppel DC REIT is acquiring the remaining 10% of Keppel DC Singapore 3 and 1% of Keppel DC Singapore 4 from sponsor Keppel Data Centres Holding, lifting its stake in both Tampines facilities to 100%.

• The agreed property values are S$434.0 million for KDC SGP 3 and S$585.85 million for KDC SGP 4 on a 100% basis, struck around independent valuations and implying a total purchase consideration of about S$50.5 million based on LLP net asset values.

• Including fees, stamp duty and expenses, the total acquisition outlay is estimated at S$53.9 million, to be funded via part of the recent S$404.5 million preferential offering and issuance of units for the acquisition fee.

• On a pro forma basis, FY2024 DPU would have risen 0.8% from 9.451 to 9.525 Singapore cents if the deal had been effective from 1 January 2024, while aggregate leverage is expected to edge down from 29.8% to 29.5% before factoring in other recent transactions.

• The move deepens the REIT’s exposure to Singapore and hyperscale tenants, lifting AUM from about S$5.7 billion to S$5.9 billion and increasing the share of Singapore assets and hyperscale rental income within the portfolio.

• The transaction is classified as an interested person transaction with the Keppel group but remains below the 5% threshold for unitholder approval; the audit and risk committee deems terms to be on normal commercial footing and not prejudicial to minority investors.