KEPPEL DC Reit's hotly-awaited Initial Public Offering was launched here on Friday at an offer price of 93 Singapore cents per unit or at the top end of its indicative price, reflecting robust demand for the first date centre reit to be listed in Asia.
Based on the final prospectus, the firm is offering 261.14 million units for sale to raise some S$243 million and upon listing, will have a market capitalisation of some S$821.1 million.
Keppel Telecommunications & Transportation, the reit sponsor and Keppel Land will collectively own some 35 per cent in Keppel DC Reit post listing, assuming the over-allotment option is fully exercised.
The reit's initial portfolio will comprise eight data centres in the Asia-Pacific - two of which are in Singapore - and Europe valued at some S$1 billion with an aggregate lettable area of 509,913 sq ft.
Keppel DC Reit offers investors a forecast distribution yield of 6.8 per cent in 2015 and 7.1 per cent the following year - a year-on-year distribution growth of 4.5 per cent driven by higher rentals and lease renewals, said Chua Hsien Yang, chief executive of Keppel DC Reit Management, the manager of Keppel DC Reit.
"Investors today desire not only stable and regular distributions, but also opportunities for distribution growth. On top of organic growth opportunities, Keppel DC Reit has an identified acquisition pipeline of three properties," said Mr Chua. These properties are located in Singapore, The Netherlands and Australia.
The offer opens Friday night at 9pm and closes on December 10 at 12pm and the listing will take place on December 12.