Alpha DC Fund Pte Ltd and Keppel Data Centres Holdings Pte Ltd (KDCH) have, through a joint venture, entered into agreements for the sale of its interest in Keppel DC Singapore 4 (KDC SGP 4), which has a gross property value of $388.8 million.
Chua Hsien Yang, CEO of the Manager, said, "Singapore is amongst the world's fastest-growing data centre markets, driven by demand from internet enterprises as well as the IT services, telecommunications and financial services sectors. The strategic acquisitions of these two quality data centres will strengthen Keppel DC REIT's foothold in this robust market. With the proposed acquisitions, Keppel DC REIT will have data centres across the Northern, Central, Eastern and Western regions of Singapore, which puts us in a strong position to serve a wider range of clients."
A 99 percent interest ($384.9 million) in KDC SGP 4 will be sold to Keppel DC REIT, and the remaining 1 percent ($3.9 million) to KDCH.
Alvin Mah, CEO of Alpha Investment Partners Ltd, said, “Marking the first divestment for Alpha DC Fund, the transaction demonstrates the Fund’s ability to undertake and invest in high-quality development projects in key data center hubs in the Asia Pacific. The Fund will continue its focus to capture opportunities offered by this fast-expanding sector underpinned by strong growth trends.”
KDC SGP 4 is located close to the two other data centers, Keppel DC Singapore 2 and 3, operated by Keppel Data Centres.
KDC SGP 4 is a five-story carrier-neutral and purpose-built colocation facility which is 92.0% occupied. Located close to two of the REIT's existing data centres, Keppel DC Singapore 2 and Keppel DC Singapore 3, the acquisition of KDC SGP 4 will strengthen the REIT's presence within the Tampines Industrial Park.
1-Net North DC is a five-story purpose-built facility on a triple-net master lease with approximately 17 years remaining, and an option to renew for a period of 7.6 years. It is located just outside the Woodlands Regional Center, a planned commercial hub that will serve as the Northern Agri-Tech and Food Corridor.
The seller for KDC SGP 4 is a 70-30 joint venture between Alpha Data Centre Fund Pte Ltd., which is managed by Alpha Investment Partners Limited, and Keppel Data Centres Holding Pte Ltd. The sellers for 1-Net North DC are Keppel Infrastructure Trust's wholly-owned subsidiary with a 51% stake in the data centre, and Shimizu Corporation's wholly-owned subsidiary with a 49 percent stake in the data centre. The agreed values for both acquisitions were negotiated on a willing-buyer willing-seller basis, taking into account their respective independent valuations.
