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Keppel T&T proposes listing of Keppel DC Reit
KEPPEL Telecommunications & Transportation (Keppel T&T) will be holding an extraordinary general meeting (EGM) on Nov 25 to seek shareholders' approval for the planned listing of Keppel DC Reit on the main board of the Singapore Exchange.
Keppel T&T will also seek shareholders' approval on a proposed divestment of its interests in Keppel Digihub, Keppel Datahub 1, Gore Hill Data Centre and Citadel 100 Data Centre, and their proposed injection into Keppel DC Reit.
The initial portfolio of Keppel DC Reit is expected to comprise eight data centre properties in Asia-Pacific and Europe: Keppel Digihub and Keppel Datahub 1 in Singapore; Gore Hill Data Centre in Sydney, Australia and iseek Data Centre in Brisbane, Australia; Basis Bay Data Centre1 in Selangor, Malaysia; GV7 Data Centre in London, the United Kingdom; Almere Data Centre in Amsterdam, the Netherlands; and Citadel 100 Data Centre in Dublin, Republic of Ireland. Keppel DC Reit will be managed by a wholly-owned subsidiary of Keppel T&T, Keppel DC Reit Management Pte Ltd.
Underpinned by a surge in demand for data centres, driven by a growth in e-commerce, cloud computing, and big data, Keppel DC Reit's investment strategy is to invest in a diversified portfolio of income-producing real estate assets that are used primarily for data centre purposes. Its initial focus will be on Asia-Pacific and Europe.
The proposed listing will be subject to various conditions including obtaining the relevant regulatory approvals and the execution of definitive agreements by the relevant parties.
In a separate announcement, Keppel Land said it is planning to divest its indirect 30 per cent stakes in two separate leasehold interests for a total of S$424.8 million to Keppel DC Reit.
In an announcement to the Singapore Exchange on Monday morning, it said that it would sell its indirect 30 per cent interest in a 30-year leasehold interests in a property located at 25 Serangoon North Ave 5 (S25) for S$262.8 million. Meanwhile, it also plans to sell its indirect 30 per cent stake in a 30-year leasehold interest in a property at 25 Tampines St 92 (T25) for S$162 million.
The purchase prices took into consideration independent valuations of the properties by Knight Frank of S$262 million and S$160 million respectively as at Sept 30.
S25 is held by Keppel Digihub while T25 is held by Keppel Datahub, with both Digihub and Datahub being wholly-owned subsidiaries of Keppel Data Centres Holding. Keppel Data Centres is a joint venture company, which is in turn indirectly held by Keppel Land - via subsidiary Keppel Digihub Holdings - and KT&T (via Keppel Data Centres) in a 30:70 proportion respectively.
Keppel Land expects to receive net proceeds of about S$96 million and realise a gain of around S$65.9 million.