Thursday, November 23, 2017

Keppel invests over $100m in Dublin data center expansion

Acquisition puts Keppel DC REIT’s assets under management at approximately $1.53bn with 917,240 sq ft of lettable area across 13 data centres.

Keppel DC REIT (SGX: AJBU) has acquired its second data centre presence in the Irish capital for a sum of $101.3m.

Named B10 Data Centre, the asset sits 12 kilometres from Dublin’s city centre and has been described as a carrier-neutral colocation data centre with a weighted average lease expiry (WALE) of approximately 11.0 years by net lettable area.

The data centre located within the Ballycoolin Business and Technology Park is currently 87.3% leased to global internet enterprise, IT services and telecommunications clients.

The hub started operations in 2013 and offers approximately 25,200 sq ft of lettable area.

Keppel DC REIT said the acquisition is immediately accretive to Keppel DC REIT’s Distribution per Unit (DPU).

It also added that the addition of the new facility will further diversify the REIT’s income stream, while its portfolio WALE remains long at approximately 9.4 years.

With the acquisition, assets under management of Keppel DC REIT have increased to approximately $1.53bn with aggregate lettable area of approximately 917,240 sq ft across 13 data centres.

Chua Hsien Yang, CEO of Keppel DC REIT Management Pte. Ltd., said: “This asset is a strategic addition to Keppel DC REIT’s portfolio given its strong tenant profile with a long WALE that provides income stability.

“Apart from enhancing its offering in a key data centre hub, the REIT will be able to reap operational synergies from its existing data centre, Keppel DC Dublin 1.”

Keppel DC REIT’s investment follows on from a booming data centre industry across Ireland and especially Dublin.

The region has seen not only builds and acquisitions from colocation players but also from hyperscalers including Google, Amazon, Facebook and Apple.

Consulting firm BroadGroup had previously cited Ireland as the most attractive location in Europe for data centres, noting the entry of hyperscale and large-scale data centre players around Dublin.