Keppel is selling its remaining 10% interest in Keppel DC Singapore 3 (KDC SGP 3) and 1% interest in Keppel DC Singapore 4 (KDC SGP SGP 4) to Keppel DC REIT for a total cash consideration of $50.5 million. The completion of the sales of the two data centres are expected to take place by 1Q2026. Post-completion, Keppel DC REIT will 100% interests in both assets.

The deal is part of Keppel’s asset monetisation programme, the company says in a Dec 16 press release. “This allows us to unlock value and redeploy capital to other opportunities across our integrated ecosystem, while enabling Keppel DC REIT to strengthen its long-term position in these quality data centre assets,” says Lee Kok Chew, Keppel’s head of the accelerating monetisation task force.

The sale brings Keppel’s announced monetisation in the year to date to over $2.4 billion.

Keppel DC REIT will fund the purchase using proceeds from its recent preferential offering. The acquisition is immediately accretive to distribution per unit (DPU), with a pro forma increase of 0.8% for FY2024. Post-acquisition, Keppel DC REIT's assets under management will rise by 3.5% to S$5.9 billion, with Singapore assets making up 58.8%.

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The two data centres are carrier-neutral and purpose-built facilities located in Tampines, with a combined lettable area of 139,469 sq ft.