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Keppel DC REIT is poised to own another shell and core data centre in Sydney costing between AU$26 million and AU$36 million (S$36.46 million), according to an SGX filing on Tuesday (7 Aug).
Located within the city’s Macquarie Business Park near the trust’s existing shell and core data centre known as Intellicentre 2 Data Centre (IC2 DC), the property will come with a minimum lettable area of 86,000 sq ft once it is completed next year or by 2020.
Dubbed as Intellicentre 3 East Data Centre (IC3 East DC), the property will be built by IC2 DC’s master lesse Macquarie Telecom, with Keppel DC REIT paying the actual construction cost upon completion.
Macquarie Telecom also signed a new 20-year triple-net master lease agreement covering IC2 DC, IC3 East DC and core buildings. The contract includes annual rental escalations with renewal options.
“The new asset will be fully-leased upon completion,” said Chua Hsien Yang, CEO of trust manager Keppel DC REIT Management.
“Sydney is a key data centre hub in Australia and a strategic market for Keppel DC REIT. We continue to see growth potential in the Australian data centre market, which was ranked as one of the top five most robust data centre markets in the Asia Pacific” by Cushman & Wakefield in 2017.
Aside from that, research projects that Sydney’s data centre market will increase at a compound annual growth rate of 10 percent until 2021.
Upon completion of IC3 East DC, Keppel DC REIT’s aggregate leasable area will rise to around 1,198,103 sq ft.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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