{
  "id": 4841226,
  "title": "Keppel DC Reit buys two freehold data centres in Japan for US$1.1 billion",
  "url": "https://urgent.news/2026/09/01/keppel-dc-reit-buys-two-freehold-data-centres-in-japan-for-us-1-1",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-01T01:13:08.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/reits-property/keppel-dc-reit-buys-two-freehold-data-centres-japan-us1-1-billion"
  },
  "original_language": "en",
  "account": "On September 1, Keppel DC Reit and Keppel announced their collective agreement to purchase a majority stake in two Tokyo data centres for approximately US$1.1 billion. The two properties, Tokyo Data Centre 4 and Tokyo Data Centre 5, are freehold, fully-fitted hyperscale co-location facilities located in Inzai City, Greater Tokyo. After the transaction, Keppel DC Reit will hold an 88.62% effective interest, while Keppel's interest through Keppel Japan KK will be 1.38%. The current operator will retain a 10% stake in each property.\n\nAccording to Keppel DC Reit's CEO, Loh Hwee Long, the acquisition offers immediate distribution per unit accretion, embedded growth through rent escalators, and potential reversion opportunities. It also strengthens Keppel DC Reit's exposure to the Japan data centre market. The Reit manager plans to raise at least S$600 million through a private placement on September 10, issuing 280.1 million new units at between S$2.096 and S$2.142 apiece.\n\nThe acquisition is expected to be immediately DPU accretive, with a projected increase in DPU from S$0.10381 to S$0.10649 on a pro forma basis, assuming completion on January 1, 2025. The assets' purchase consideration of 190 billion yen (about a 2.1% discount to their valuation of 194 billion yen) represents a discount of approximately 2.5% and 4.6% compared to the volume-weighted average price of all trades on Monday.\n\nFollowing the acquisition, the Reit's portfolio rental income contribution from Japan is expected to rise from about 9% to 23%, while the top client's contribution will fall from 43.5% to around 38.2%. The Reit's portfolio rental income will remain anchored in Singapore, accounting for about 60% post-acquisition. The combined portfolio will see a slight increase in contracted power capacity, from about 95% to 96%, and a modest extension of the weighted average lease expiry (Wale) by lettable area, from 6.7 to 6.8 years. Assets under management will grow from S$6.3 billion to approximately S$7.6 billion across 27 data centres in 10 countries.",
  "summary": "Its manager also plans to raise at least S$600 million through a private placement",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "Keppel DC Reit’s Tokyo drift: The easy yen trade is over",
        "url": "https://urgent.news/2026/09/02/keppel-dc-reits-tokyo-drift-the-easy-yen-trade-is-over",
        "published": "2026-09-02T23:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}