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Keppel DC Reit to acquire long leasehold interest in Dublin property for 30m euros
KEPPEL DC Reit will be acquiring the long leasehold interest in Keppel DC Dublin 1, a property in the Citywest Business Campus in Dublin, Ireland.
On Wednesday, Keppel DC Reit Management, the manager of Keppel DC Reit, said that Perpetual (Asia), the trustee of Keppel DC Reit, had on March 14 entered into a contract with Dali Properties for the deal.
The agreed value for the acquisition is 30 million euros (S$48.1 million), which includes a deposit of 500,000 euros in cash to be paid to Dali Properties on the date of signing of the contract.
The remaining 29.5 million euros is to be paid to Dali Properties in cash by the first half of 2020, which is when the acquisition is expected to be completed.
The long leasehold interest represents the remainder of the 999-year leasehold interests in the property starting from Jan 1, 2000.
Keppel DC Reit, through its wholly owned subsidiary, KDCR (Ireland), currently owns a leasehold interest in Keppel DC Dublin 1, a data centre, which expires on April 11, 2041.
Following the acquisition, Keppel DC Reit will own the leasehold interest in the property up to the end of 2998, and the long tenure will allow the Reit to be "more agile in its investment strategy and provide longer-term certainty to its clients" in the data centre.
Keppel DC Reit closed one Singapore cent down to S$1.40 on Wednesday.