Atiqah Mokhtar Published on Mon, Sep 06, 2021
Keppel DC REIT has acquired a 100% interest in a freehold property with two data centre buildings in the Netherlands for EUR37.2 million ($59.9 million).
The property is located in De Hurk, the largest business park in Eindhoven. It is Keppel DC REIT’s third asset in the Netherlands.
According to a media release by the REIT’s manager on Sept 6, the property was purchased from a fund affiliated with MCAP Global Finance (UK), the European subsidiary of New York headquartered Marathon Asset Management.
The purchase price was arrived at on a willing-buyer and willing-seller basis, and legal completion has taken place.
The property, which is located at Dillenburgstraat 25A-25E, 25E1, 25F, 25G and 25J-25M, 5652 AM, will be named Eindhoven Campus.
Comprising two shell and core data centre buildings as well as a warehouse and an ancillary office building within the site, Eindhoven Campus has a combined net lettable area of approximately 83,841 sq ft and is fully leased with a weighted average lease expiry (WALE) of 6.8 years by leasable area and 8.5 years by rental income. The data centre space is leased to a global leading IT services provider.
“Being one of the top four data centre markets in Europe and the eighth largest data centre market globally, the Netherlands is a strategic market for Keppel DC REIT. We are pleased to be able to add to our portfolio a quality and green data centre located in the key technology hub of Eindhoven,” says Anthea Lee, CEO of the manager.
“With this acquisition, we also diversify our portfolio base with the addition of a well-established data centre client and we look forward to establish strong ties with this client. With this asset, we continue to leverage the strong fundamentals of the Netherlands to provide our investors with stable and sustainable returns,” Lee adds.
Based on the valuation dated July 7 by CBRE Valuation & Advisory Services, an independent valuation firm appointed by the trustee of Keppel DC REIT, the market value of the property was EUR35.4 million (approximately $57.1 million).
The acquisition is expected to be accretive to Keppel DC REIT’s distribution per unit, and is funded by the proceeds from the recent equity fund raising and by debt denominated in Euro.
Including the strategic addition of Eindhoven Campus, Keppel DC REIT’s portfolio occupancy rate will improve from 98% as at June 30 to 98.1%, while WALE will remain unchanged at 6.5 years.
Units in Keppel DC REIT closed flat at $2.53 on Sep 3.
Photo: Keppel DC REIT