Keppel DC REIT enters Japan with acquisition of hyperscaler data center in Tokyo

Keppel DC REIT Management Pte. Ltd, as manager of Keppel DC REIT, and Keppel Ltd. (Keppel) have entered into an agreement to acquire a 100 percent interest in a shell and core data center located in Tokyo for JPY 23.4 billion ($149 million).

The total purchase consideration represents a 2.5 percent discount to the property’s valuation of JPY 24.0 billion ($153.21 million). Keppel DC REIT will have a 98.47 percent effective interest in the property, while the remaining 1.53 percent effective interest in the property will be held by Keppel.

The freehold multistory property, named Tokyo Data Center 1, was completed in 2019 with a net lettable area of 190,166 square feet. It is master leased on a triple-net basis to a Fortune Global 500 company and hyperscaler. With the remaining lease term of approximately seven years, there is an opportunity for positive rental reversion and potential for further organic growth on the back of growing demand for generative artificial in