Keppel DC Reit’s Tokyo drift: The easy yen trade is over
There is a risk trailing every data centre valuation today: the threat of quickly becoming outdated
Keppel DC Real Estate Investment Trust (Reit) recently acquired two data centres in Tokyo for S$1.4 billion, marking a shift in their investment strategy. The acquisition includes a 88.6% stake in two freehold assets, purchased at a 2.1% discount to valuation. This move provides immediate accretion to distribution and net asset value, while a S$625 million placement helps finance the purchase.
However, the real story lies in the debt financing. According to Maybank analyst Krishna Guha, the yen-denominated debt used for the purchase carries an interest rate of approximately 2.9%. This rate, while not exceedingly high, serves as a stark reminder of the changing landscape.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Keppel DC Reit buys two freehold data centres in Japan for US$1.1 billion businesstimes.com.sg
