Keppel DC REIT, a Singapore listed real estate investment trust has indicated plans to acquire a data center in Inzai, Japan. The acquisition would add a second data center asset in Japan to Keppel DC REIT’s portfolio, strengthening its presence in Northeast Asia.
In an official statement the company said, “Keppel DC REIT and Keppel Ltd. (Keppel) have indirectly entered into agreements with unrelated third-party vendors, to acquire a 100% interest in Tokyo Data Centre 3, a freehold, newly built hyperscale data center located in Inzai City, Greater Tokyo.” The transaction is worth a whopping JPY 82.1 billion (~ US$ 553 million), but the seller was not named.
Explaining why it chose to acquire the property, it said, “Japan continues to experience strong demand while new supply remains constrained due to power and construction limitations,” and listed Inzai’s location, network connectivity and low latency as other driving factors. The five-storey data center is built to Tier III-equivalent specifications and the latest seismic standards with a base isolation system. The facility is managed by an established global third-party operator with over two decades of data center experience and a proven track record.
Mr Loh Hwee Long, CEO of the Manager of Keppel DC REIT, said, “The accretive acquisition of Tokyo Data Center 3 is aligned with our value creation strategy to pursue hyperscale opportunities in established data center hubs. The favourable demand-supply dynamics for data centers in Japan and the country’s strategic position as an interconnect location between Asia and the Americas make it a compelling market for long-term growth. We are pleased to expand our presence in Japan with another high-quality asset that will enhance our portfolio and strengthen our income diversification.”
The acquisition is expected to be completed by the end of this year. With this acquisition, Keppel DC REIT’s assets under management will further increase to SG$ 5.7 billion (~ US$ 4.4 billion) with 25 data centres across 10 countries in Asia Pacific and Europe.
Source: w.media
