To fund Keppel DC REIT's (KDC) proposed acquisition of interests in two data centre buildings, SGP KDC 7 and SGP KDC 8, located at 82 Genting Lane, KDC's manager has announced the launch of an equity fund raising (EFR) of almost $1 billion.
The EFR comprises a private placement of no less than approximately $600.0 million; a preferential offer comprising $300 million, and the sponsor's subscription of $85 million.
The private placement price is likely to be at $2.074 to $2.128 per unit, or 1.5% to 4% discount to adjusted volume-weighted average price (VWAP); the preferential offering's price range is expected to be $2.03 to $2.08 per unit, or a 3.7% to 6.1% discount to VWAP.
The sponsor's subscription will be at the issue price of the preferential offering.
On Nov 19, KDC announced the proposed acquisition of two AI-ready hyperscale data centres in Singapore, SGP KDC 7 and SGP KDC 8, for $1.38 billion.
The proceeds from the EFR will be used to partially fund the proposed stake in the private company, Memphis 1, that holds stakes in SGP KDC 7 and SGP KDC 8, and to fund new notes, which will be used towards redeeming the existing notes of Memphis 1.
See also: Elite UK REIT to divest Hilden House for GBP3.3 mil
Although the books have not opened, interest is reported to be at a high level.
