Keppel DC REIT announced that it has strengthened its portfolio through the acquisition of two fully-fitted data centre facilities in Jiangmen, Guangdong Province, for RMB 1380.6 million, which is approximately 297.1 million SGD.
The two acquisitions were made after Keppel DC REIT entered into agreements with Guangdong Bluesea Data Development Co. Ltd. (Bluesea) and its parent company, Guangdong Bluesea Mobile Development Co. Ltd.
Keppel DC REIT had previously closed its first deal with Bluesea in July 2021, making its first acquisition in China, the Guangdong Data Centre. Keppel DC REIT is set to name its newly acquired data centre facilities Guangdong Data Centre 2 (Guangdong DC 2) and Guangdong Data Centre 3 (Guangdong DC 3).
Guangdong DC 2 is already fully-fitted, and payment will be made in full at legal completion of the acquisition.
On the other hand, Guangdong DC 3 is expected to be fully-fitted out by the third quarter of 2023. Hence, partial payment will be made for Guangdong DC 3, and Bluesea will pay Keppel DC REIT rent for the building shell and an interest on the partial payment, with the remainder to be paid when the fit-out works are completed. The properties will be leased to Bluesea on a triple net basis for 15 years.
Bright Growth Prospects for Guangdong Data Centre Industry
The two data centres are seven-storeys high and have a gross floor area of approximately 40 920 square metres. They are also designed to meet the highest standard for data centres in China, in accordance with the Code for Design of Data Centre Grade A GB.
As the Guangdong-Hong Kong-Macao Greater Bay Area has been identified as one of China’s eight national computing hubs, Keppel DC REIT’s investments into the region are especially timely, and likely to generate high returns.
Keppel also noted in the press release that the Guangdong data centre market is set to grow even further, with the rising demand for high-quality and efficient data centres and tightening supply of critical infrastructure.
In a press release statement by Keppel Corporation, Anthea Lee, CEO of Keppel DC REIT Management Pte. Ltd. (the Manager), affirmed data centres’ significance and centrality in bolstering broad-based, cross-industry digital transformation efforts.
“Data centres are a critical part of the digital infrastructure that supports many other industries and growth areas. The acquisition will increase the number of data centres in the portfolio that are leased on a master leased basis resulting in higher portfolio weighted average lease expiry and occupancy.”
Following this latest agreement, Keppel DC REIT is set to have an expanded and strengthened portfolio of 23 data centres across the Asia Pacific region (APAC) and Europe.
“Outstanding Data Center Projects” is an awards category for this year’s W.Media Asia-Pacific Cloud & Datacenter Awards. Thinking of nominating or sponsoring? Visit our Awards Page for more information. Nominations are open until 31st July.
