Keppel DC REIT completes KDCS3/4 buyout; redirects S$53.4m preferential proceeds to fund acquisitions
Summary:
-
Keppel DC REIT has completed the acquisitions of the remaining interests in Keppel DC Singapore 3 and Keppel DC Singapore 4, and now holds 100% of both data centres.
-
Gross proceeds of approximately S$355.5m from the earlier preferential offering have been fully allocated, including S$229.8m to partially finance a 98.47% effective interest in a Japan data centre.
-
S$53.4m of proceeds originally earmarked for debt repayment have been reallocated to finance the KDCS3/4 acquisitions, reflecting a shift from creating debt headroom to directly funding the transactions.
-
Additional proceeds include S$6.3m to an asset enhancement at Keppel DC Singapore 8, S$10.7m for a 30-year land lease extension of Keppel DC Singapore 1, and S$4.2m for fees and expenses, leaving S$49.0m pending utilisation.
-
The manager will update unitholders as the remaining preferential offering proceeds are materially deployed, including for asset enhancement, lease extension and capital management purposes.