SINGAPORE: Singapore-listed data centre real estate investment trust Keppel DC REIT and sponsor Keppel are set to buy a data centre in Tokyo for 23.4 billion yen ($145 million), in the REIT’s first Japanese acquisition.
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The figure represents a 2.5% discount to the 24 billion yen valuation of Tokyo Data Centre 1, the REIT’s manager – Keppel DC REIT Management – said in a statement on Thursday.
The REIT’s manager said Japan was Asia’s second-largest data centre hub and was set to expand at a compounded annual growth rate of over 10% from 2024 to 2028 driven in part by the proliferation of generative artificial intelligence.
“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,” the REIT’s manager’s CEO, Loh Hwee Long, said in the statement.
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Upon completion of the acquisition in the third quarter, Keppel DC REIT will own 98.47% of the data centre, with Keppel holding the remainder.
The REIT’s manager said Tokyo Data Centre 1 will be funded through yen-denominated debt.
-Reuters
-TheStar