SINGAPORE (Nov 29): DBS Vickers Securities is maintaining its “buy” call on Keppel DC REIT with a revised target price of $1.33, after rolling forward valuations and pricing in the recently-announced acquisition of Keppel DC Singapore 3 (KDC SG 3), a carrier-neutral data centre in Singapore formerly known as T27 or Keppel Datahub 2.

To recap, Keppel Data Centres Holding (KDCH) – a joint venture between Keppel Telecommunications & Transportation (Keppel T&T) and Keppel Land – in October announced the divestment of 90% of KDC SGP 3 to Keppel DC REIT via share sale for an aggregate consideration of $141 million.

In a Tuesday report, analysts Derek Tan and Mervyn Song say the acquisition of KDC SG 3 will further diversify the REIT’s earnings base as well as fuel a stronger earnings growth trajectory of 5% going forward.  

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