Keppel Divest Genting Lane Data Centres Kdc Reit 138 Bil

‘s constructionKeppel Land signs MOU with co-investor to expand presence in VietnamKeppel, on November 19, shared news of its divestment of its data centre joint venture (JV) to Keppel DC REIT (KDC REIT). The total value of this divestment is set at $1.38 billion.KDC REIT will acquire 49% of the JV and will be granted a call option to purchase the remaining 51% from Keppel in 2025. Upon completion, KDC REIT will fully own the two data centres within the JV – KDC SGP 7 and KDC SGP 8.Keppel will continue to serve as the operator and facility manager for the two data centres. The acquisition is expected to expand KDC REIT’s assets under management (AUM) by 36% to $5.2 billion, with a total of 25 data centres across Asia Pacific and Europe. The REIT’s distribution per unit (DPU) is expected to increase by 8.1% as a result of this transaction.Keppel’s share of the divestment is estimated to be around $280 million. The gross divestment price includes consideration for Keppel’s 51% stake in the JV, should the call option be exercised in 2025. It also includes additional consideration to be paid should the campus be granted a 10-year land tenure lease extension.The JV will continue to have a vacant plot of land designated for a third data centre, which will be sub-leased to Keppel’s private funds. The development of this data centre, KDC SGP 9, will be carried out by Keppel’s two data centre private funds.The proposed transaction is expected to be completed by the end of 2025, in stages. Manjot Singh Mann, CEO of Keppel’s connectivity division, states that this deal highlights the company’s strengths as a global asset manager and operator. The company has an integrated ecosystem, providing access to power and other critical resources, technology know-how, and strong customer relationships with hyperscalers worldwide.Loh Hwee Long, CEO of KDC REIT’s manager, describes this deal as a “landmark” opportunity for the REIT. He believes that the acquisition will bring in strong positive cash flows and be immediately accretive to DPU. Additionally, he expects the inclusion of these assets to strengthen Keppel DC REIT’s position in the Singapore market, where demand for data centres is high and supply is tight.

In a recent joint statement, it was announced that CDL, Frasers Property, and Sekisui House will be teaming up for a new venture. With CDL holding a 50% stake and Frasers Property and Sekisui House holding 25% each, this partnership has already sparked anticipation among potential property buyers. The highly coveted location in District 12 will be led by this exceptional trio, promising a project that will surely impress. This marks CDL’s first collaboration with both Frasers Property and Sekisui House, and they are already working together to leverage their collective expertise and knowledge for this groundbreaking development in the desirable Toa Payoh area. According to real estate professional Leonard Tay, Head of Research at Knight Frank Singapore, there has been fierce competition among developers to secure prime locations, despite a decrease in GLS tenders in 2022. The Orie Condo, situated in the heart of District 12, is expected to be a major player in this highly anticipated collaboration. Interested parties can visit The Orie Condo’s official website for more information.