Keppel DC Reit acquires data centre in the Netherlands for 37.2m euros

KEPPEL DC Real Estate Investment Trust (Reit) AJBU : AJBU 0% has acquired two data centre buildings in Eindhoven, the Netherlands for 37.2 million euros (S$59.9 million), its manager said in a bourse filing on Monday.

The freehold property, located in Eindhoven's largest business park De Hurk, is the Reit's third asset in the Netherlands, and "further strengthens its foothold in this key data centre market in Europe", the manager said.

Named Eindhoven Campus, the property has a combined net lettable area of 83,841 square feet and is fully leased with a weighted average lease expiry (WALE) of 6.8 years by leasable area and 8.5 years by rental income. The data centre space is leased to a global leading IT services provider, the Reit's manager said.

The manager expects the acquisition will be accretive to Keppel DC Reit's distribution per unit. With the addition of Eindhoven Campus, Keppel DC Reit's portfolio occupancy rate will also improve to 98.1 per cent from 98 per cent as at June 30, 2021, while its WALE remains unchanged at 6.5 years.

The acquisition is funded by euro-denominated debt and by the proceeds from the Reit's recent equity fund raising.

Eindhoven Campus' market value was 35.4 million euros (S$57.1 million), based on the valuation on July 7 by an independent valuation firm appointed by the trustee of the Reit.

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Units of Keppel DC Reit closed flat at S$2.53 on Friday.

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