Keppel DC Reit acquires second data centre in Germany

/ EdgeProp Singapore |
December 12, 2019 5:26 PM SGT
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Keppel DC Reit has entered into a sale and purchase agreement with Maena KG for the acquisition of a shell and core, purpose-built data centre in Kelsterbach, Germany. The purchase consideration is €81.8 million ($125.3 million). This is the Reit’s second data centre acquisition in Germany and its eighth in Europe.
The Reit is managed by Keppel DC Reit Management, and its investment strategy is to principally invest directly, or indirectly, in a diversified portfolio of income producing real estate assets which are used primarily for data centre purposes.
The newest acquisition is located near Frankfurt Airport and is 18km from the city centre. According to the Reit, the city is an established international connectivity hub and data centre demand in Frankfurt is supported by its strong connectivity, favourable business climate, and position as a major financial hub in Germany.
The property has a total lettable area of 540,869 sq ft and is fully leased on a triple-net basis until end-2025. Based on an independent valuation by JLL, the property is valued at €86 million.
Chua Hsien Yang, CEO of Keppel DC Reit Management, says: “The addition of this data centre will strengthen Keppel DC Reit’'s foothold in Germany, which is one of the most established data centre markets in Europe. This acquisition underscores our focus on executing and delivering on our growth initiatives to capture value from the fast-growing digital economy and capitalise on rising demand for data centre facilities.”
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