Keppel divests remaining interests in two Singapore data centres for S$50.5 million to Keppel DC Reit

[SINGAPORE] Asset manager Keppel announced on Tuesday (Dec 16) that its connectivity division has agreed to sell its stakes in two data centres for a total cash consideration of S$50.5 million to Keppel DC Real Estate Investment Trust (Reit).

The remaining stakes held by Keppel are the 10 per cent interest in data centre Keppel DC Singapore 3 (KDC SGP 3), and 1 per cent interest in another data centre, Keppel DC Singapore 4 (KDC SGP 4).

The transactions are expected to occur by the first quarter of 2026.

A company filing on Tuesday indicated that these deals were part of Keppel’s asset monetisation programme, which will bring the group’s announced monetisation in the year to date to over S$2.4 billion. The acquisitions will be funded by the Reit’s preferential offering and issuance of units. Following the completion of the deal, the aggregate leverage of the Reit is expected to improve from 29.8 per cent to 29.5 per cent, with debt headroom of around S$944 million.

The Reit’s assets under management (AUM) are set to rise by around 3.5 per cent, from S$5.7 billion to S$5.9 billion after this move, with the share of Singapore assets increasing from 57.8 per cent to 58.8 per cent of AUM. Contribution from hyperscale clients is set to rise by 20 basis points, from 69.3 per cent to 69.5 per cent of rental income.

Data centres KDC SGP 3 and KDC SGP 4 are carrier-neutral and purpose-built facilities offering co-location suites. They have a combined lettable area of 139,469 sq ft, and are located in Tampines.

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Shares of Keppel closed 0.4 per cent or S$0.04 down at S$10.06 on Tuesday, while units of Keppel DC Reit closed 1.8 per cent or S$0.04 lower at S$2.20.