Keppel DC REIT has entered into an agreement to acquire a data centre located in Bracknell, UK, for £57.0 million ($105.5 million).
Located within the Greater London urban area, the property has been acquired from a Fiera Real Estate/SEDCO Capital joint venture and marks Keppel DC REIT’s second acquisition of a data centre in Greater London, and its third in the UK.
Situated on a 4.7 acre plot of freehold land and with a gross floor space of 94,867 sq ft, the property, which will be named London Data Centre, consists of three interlinked two-storey buildings that house data centre space along with ancillary office space, announced Keppel DC REIT in a press release on Dec 27.
The property is fully leased on an existing triple-net lease on a shell and core basis to a leading telecommunications company till 2039.
London Data Centre is located near Bracknell’s town centre, 32km from London Heathrow Airport, and 55km from Central London.
Anthea Lee, CEO of Keppel DC REIT Management, the Manager of Keppel DC REIT says: “We are pleased to strengthen our presence in London, a top global data centre hub, with the acquisition of a data centre with a long leaseback period to a strong tenant. Our acquisition of London Data Centre reflects our judicious criteria for identifying and evaluating potential highquality assets in key data centre hubs and other prime locations, with strong tenancies that yield stable and regular income.”
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In addition to London Data Centre, Keppel DC REIT’s portfolio of assets in the UK includes the Cardiff Data Centre in Cardiff and the GV7 Data Centre in London.
The acquisition is expected to be accretive to Keppel DC REIT’s distribution per unit (DPU).
Post-acquisition, Keppel DC REIT will increase the proportion of its shell and core data centre leases from approximately 18.3% to 20.9% (by assets under management).
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The Manager intends to fund the acquisition, which is expected to be completed in 1Q2022, with part of the proceeds from the recent placement, along with external financing.
Keppel DC REIT’s aggregate leverage is expected to increase from 36.4% as at Sept 30, 2021 to 38.27%.
The property will improve Keppel DC REIT’s portfolio’s lease profile by increasing the weighted average lease expiry (WALE) from 7.7 years to 8.1 years, says the REIT, with portfolio occupancy at 98.3%.
With the acquisition of London Data Centre, Keppel DC REIT will have a total of 21 data centres in Asia Pacific and Europe.
