Keppel Data Centres Holding Pte Ltd (KDCH), a joint venture between Keppel Telecommunications & Transportation (Keppel T&T) and Keppel Land will unlock value with the divestment of 90% of Keppel DC Singapore 3 (KDC SGP 3), formerly T27 or Keppel Datahub 2, to Keppel DC REIT via share sale for an aggregate consideration of approximately $141 million.
The consideration for the divestment was arrived at on a willing-buyer and willing-seller basis and takes into account independent valuations of the property, both external and shareholder loans, and includes a rental income support of $1.58 million. The transaction is expected to unlock approximately $121 million in cash for KDCH.
KDC SGP 3 is a five-storey, carrierneutral data centre in Singapore with 52,615 sf of high-availability data centre co-location space.
Built to energy-efficient specifications, the facility was the first data centre in Singapore to receive the BCA-IDA Green Mark Platinum Award for New Data Centres, the highest green accolade from the Building and Construction Authority of Singapore and the Infocomm Development Authority of Singapore.
Leveraging Keppel T&T’s strong track record in building, managing and operating high-quality data centres, a wholly-owned subsidiary of KDCH will enter into an exclusive lease agreement and facility management agreement with Keppel DC REIT for a period of 10 years as part of the transaction.
The transaction unlocks value from KDC SGP 3, and recycles capital for Keppel T&T and Keppel Land, allowing it to maximise overall returns for shareholders.