Keppel DC Reit eschews lawsuit for ‘collaborative’ approach to 48-million yuan arrears by Guangdong tenant

KEPPEL DC Reit is taking a “collaborative but firm” approach as it seeks to resolve the current situation of rental arrears at its Guangdong data centres (GDC), after reporting a S$10.5 million loss allowance in the second half of 2023.

Speaking at an earnings briefing on Friday (Jan 26), chief executive of the manager Loh Hwee Long said this would be the “best way forward” to safeguard the best interest of the Reit, and is preferable to litigation.

Last month, Keppel DC Reit said it issued a letter of demand to the tenant of GDC 1, 2 and 3 – Guangdong Bluesea Data Development – to recover sum in arrears-to-date of 48.3 million yuan (S$9 million) as well as a request for top-up of security deposits of 32.2 million yuan.