Keppel DC REIT has announced the acquisition of two data centers in China. The Singaporean data center REIT entered into an agreement with Guangdong Bluesea Data Development Co. Ltd. to acquire two facilities in Jiangmen, Guangdong Province. The deal is worth RMB 1,380.6 million (~US$206m). Each data center is a seven-story building. Their combined gross floor area is 440,462 square feet (40,920 square meters). The data centers will also be named Guangdong DC2 and Guangdong DC3.
Guangdong DC 2 is reportedly fully-fitted. On the other hand, Guangdong DC 3 is scheduled to be fully fitted in Q3 2023. Keppel will lease the data centers to Bluesea on a triple net basis for 15 years. Keppel also expects to close the Guangdong DC2 acquisition in H2 2022. The DC3 facility acquisition is scheduled to close in Q3 2023. Keppel will fund the purchase through a mix of equity, debt, and existing cash.
The CEO of Keppel DC REIT, Anthea Lee, said: "Data centers are a critical part of the digital infrastructure that supports many other industries and growth areas. The acquisition will increase the number of data centers in the portfolio that are leased on a master leased basis resulting in higher portfolio weighted average lease expiry and occupancy."
Keppel DC REIT will have 23 data centers in its portfolio across Europe and APAC upon closing the acquisition of the data centers.
