Keppel DC Reit to raise S$473.8m to help fund data centre acquisitions

Singapore

KEPPEL DC Reit is planning to raise about S$473.8 million to partially fund the acquisition of a 99 per cent stake in data centre Keppel DC Singapore 4 (KDC SGP 4), along with a 100 per cent stake in 1-Net North Data Centre (1-Net North DC).

The proposed equity fundraising comprises a combination of a private placement and preferential offering, as well as debt. The Reit's aggregate leverage ratio will be reduced from 31.9 per cent to 30.3 per cent as at June 30, its manager said on Monday. Both acquisitions, which are slated to be completed in the fourth quarter, are expected to be highly accretive to Keppel DC Reit's distribution per unit, the manager added. When completed, the Reit's assets under management will grow by 30.7 per cent to S$2.58 billion, comprising 17 data centres globally.