Keppel DC REIT Management, as manager of Keppel DC REIT, and Keppel will pay ¥23.4 billion ($145 million) to acquire a 100 percent interest in a shell and core data center located in Tokyo.
The freehold multi-story property, dubbed Tokyo Data Centre 1, was completed in 2019 with a net leasable area of 190,166 square feet. It is master leased on a triple-net basis to a Fortune Global 500 company and hyperscaler. Keppel said the remaining lease term of approximately seven years will provide an opportunity for positive rental reversion and potential for further organic growth on the back of growing demand for generative AI and tight data center supply in Japan.
The total purchase consideration represents a 2.5 percent discount to the property’s valuation of ¥24 billion ($149 million). Keppel DC REIT will have a 98.47 percent effective interest in the property, with the remaining 1.53 percent effective interest held by Keppel.
“Our first acquisition in Japan,
