Keppel Completes Full Ownership Transfer of Two Singapore Data Centers to Its REIT

Keppel Completes Full Ownership Transfer of Two Singapore Data Centers to Its REIT December 17, 2025 In a strategic move highlighting the active capital recycling within the digital infrastructure sector, Singaporean conglomerate Keppel Ltd. has finalized the sale of its remaining stakes in two local data centers to its affiliated real estate investment trust. The transaction underscores the growing trend of asset owners monetizing mature, income-generating infrastructure to fund new growth initiatives. Keppel’s Connectivity Division agreed to divest its residual 10 percent interest in Keppel DC Singapore 3 (KDC SGP 3) and 1 percent interest in Keppel DC Singapore 4 (KDC SGP 4) to Keppel DC REIT for a total cash consideration of $50.5 million. The deal, expected to be completed by the first quarter of 2026, will grant the REIT full, 100 percent ownership of both carrier-neutral facilities located in Singapore's Tampines Industrial Park. The two purpose-built colocation sites have a combined lettable area of approximately 139,470 square feet. Lee Kok Chew, Keppel’s head of the accelerating monetisation task force, framed the sale as part of a disciplined capital strategy. “Monetizing our remaining interests in KDC SGP 3 and 4 reflects Keppel’s disciplined approach to capital recycling,” he stated. “This allows us to unlock value and redeploy capital to other opportunities across our integrated ecosystem.” The acquired assets are described as stabilized and highly occupied. KDC SGP 3, completed in 2015, spans 54,925 square feet across five stories and is fully leased to two tenants. Its counterpart, KDC SGP 4, was completed in 2018, totals 84,545 square feet, and is currently 94.5 percent occupied by four tenants. Keppel DC REIT noted the acquisition enhances its exposure to hyperscaler clientele. For Keppel DC REIT, the transaction consolidates its portfolio in a core market. Loh Hwee Long, CEO of the REIT’s manager, commented, “Acquiring full ownership of KDC SGP 3 and 4 strengthens Keppel DC REIT’s position in Singapore’s data center market.” He added that the move aligns with the trust’s value-creation strategy and commitment to delivering long-term returns as data center demand grows. The purchase will be funded using part of the proceeds from the REIT’s recent preferential offering. The deal is indicative of a broader industry pattern where developers and operators leverage REIT structures to unlock capital from operational assets. It allows the parent company, Keppel, to recycle investment into new projects while providing the listed REIT with a stream of stable, contracted income from essential digital infrastructure in a high-demand market like Singapore. Source: datacenterdynamics