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Keppel’s Tokyo Data Centre Acquisition: Price, Ownership and Portfolio Impact
The two data centres were priced at JPY190 billion (about S$1.549 billion) on a 100% basis—2.1% below valuation. Both facilities are fully occupied, with about 2.8% contracted annual rent escalation; Japan’s share of the REIT’s rental income is projected to rise from 9% to about 23%.
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Key takeaways
- The two data centres were priced at JPY190 billion (about S$1.549 billion) on a 100% basis—2.1% below valuation.
- Both facilities are fully occupied, with about 2.8% contracted annual rent escalation; Japan’s share of the REIT’s rental income is projected to rise from 9% to about 23%.
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openai.comCreate a landscape editorial hero image for this Studio Global article: What are the key details of Keppel DC REIT and Keppel Ltd.’s acquisition of a combined 90% effective interest in Tokyo Data Centre 4 and Tok. Article summary: Keppel DC REIT and Keppel Ltd. agreed to acquire a combined 90% effective interest in Tokyo Data Centre 4 and Tokyo Data Centre 5, two freehold, fully fitted hyperscale colocation facilities in Inzai City, Greater Tokyo.. Topic tags: general, general web, user generated. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fa
Keppel DC REIT and Keppel Ltd. agreed to acquire a combined 90% effective interest in Tokyo Data Centre 4 and Tokyo Data Centre 5, freehold hyperscale colocation facilities in Inzai City, Greater Tokyo. The headline price is JPY190 billion (about S$1.549 billion) for the assets on a 100% basis, and the deal would give Keppel DC REIT an 88.62% effective interest in each facility. 8
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Price and ownership split
The JPY190 billion purchase consideration is about S$1.549 billion, compared with an independent valuation of JPY194 billion (about S$1.581 billion). That represents a 2.1% discount, or a difference of JPY4 billion—approximately S$32.6 million using the cited Singapore-dollar figures. 8
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The effective interests are divided as follows:
- Keppel DC REIT: 88.62%, with a stated payment of JPY168.4 billion (about S$1.372 billion).
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- Keppel Ltd.: 1.38%, held through Keppel Japan KK.
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- Existing operator: The remaining 10% in each asset.
Together, Keppel DC REIT and Keppel Ltd. hold the announced 90% combined interest; the purchase price above is stated on a 100% basis, not just for that 90% stake. 8
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Occupancy, rent and lease terms
Both facilities are 100% occupied by four investment-grade internet enterprise and information technology services clients. 7
29 The contracted average annual rent escalation is approximately 2.8%, while in-place rents are estimated to be about 30% below prevailing market rents.
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The facilities have different lease profiles: Tokyo Data Centre 4 has a weighted average lease expiry (WALE) of about 4.5 years, compared with about 10.6 years for Tokyo Data Centre 5. Together, their blended WALE is 8.3 years. 17
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What the deal changes for Keppel DC REIT
After the acquisition, Japan’s share of the REIT’s portfolio rental income is expected to rise from 9% to about 23%. The cited figures do not specify Singapore’s post-acquisition share, so they do not support a precise comparison with Singapore’s continuing role in the portfolio. 5
In short, the transaction adds two fully occupied Japanese facilities at a price below their stated valuation. The disclosed terms combine contracted rent increases with rents estimated below market, while the two assets’ differing lease expiries give the portfolio a mix of shorter and longer lease periods. 7
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What is the short answer to "Keppel’s Tokyo Data Centre Acquisition: Price, Ownership and Portfolio Impact"?
The two data centres were priced at JPY190 billion (about S$1.549 billion) on a 100% basis—2.1% below valuation.
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The two data centres were priced at JPY190 billion (about S$1.549 billion) on a 100% basis—2.1% below valuation. Both facilities are fully occupied, with about 2.8% contracted annual rent escalation; Japan’s share of the REIT’s rental income is projected to rise from 9% to about 23%.
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marketscreener.comKeppel DC REIT : acquires two freehold hyperscale colocation data ...