Keppel DC REIT acquires data center tenant in Netherlands for S$1.55

Keppel DC REIT, the first data centre real estate investment trust listed in Asia, announced the acquisition of Borchveste Almere, the REIT’s tenant at Almere Data Centre in the Netherlands.

The trust purchased the private company for €1 or S$1.55 in order for Keppel DC REIT to hold a direct relationship with a client that was sub-leased by Borchveste Almere at the data centre in the Netherlands.

This sub-lease was Borchveste Almere’s sole business.

The acquisition was completed on the same day as the sale and purchase agreement, which was paid in full and in cash. The pro forma net asset value of Borchveste Almere’s shares was €0 at the time of purchase.

Keppel Data Centres Holding, which is a subsidiary of the REIT’s sponsor Keppel Telecommunications & Transportation, has agreed to be responsible for the expenses in relation to Borchveste Almere.

Keppel Data Centres also owns a data centre located next to Almere Data Centre.

The acquisition is not expected to have any material impact on Keppel DC REIT’s financial performance for the financial year ending on 31 December 2020.

As of writing, Keppel DC REIT is sitting strongly at the top of all other REITs in Singapore, with a net property income of more than $55 million in the first quarter of 2020.

In a presentation released this week, Keppel DC REIT expects demand for data centres to hold up during the pandemic along with a rise of 3.4% in global IT spending and a 14% growth in the global colocation market.