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Two data centre buildings were acquired by Keppel DC REIT for 37.2 million euros ($59.9 million). Source:
Keppel DC REIT on Monday (6 September) announced that it has acquired two data centre buildings in Eindhoven, the Netherlands for 37.2 million euros ($59.9 million).
Located within Eindhoven’s largest business park De Hurk, the freehold property is the third asset of Keppel DC REIT in the Netherlands, further strengthening “its foothold in this key data centre market in Europe”.
The property, which will be named Eindhoven Campus, has a combined net lettable area of about 83,841 sq ft. It is fully leased to a global leading IT services provider with a weighted average lease expiry (WALE) of 6.8 years by leasable area and 8.5 years by rental income.
The REIT expects the acquisition – funded by Euro-denominated debt and by proceeds from recent equity fundraising – to be accretive to its distribution per unit.
With the addition of Eindhoven Campus, the portfolio occupancy rate of Keppel DC REIT will improve to 98.1% from 98% as of 30 June 2021, while WALE remains unchanged at 6.5 years.
“Being one of the top four data centre markets in Europe and the eighth largest data centre market globally, the Netherlands is a strategic market for Keppel DC REIT,” said Anthea Lee, CEO of Keppel DC REIT’s manager.
“With this acquisition, we also diversify our portfolio base with the addition of a well-established data centre client and we look forward to establish strong ties with this client. With this asset, we continue to leverage the strong fundamentals of the Netherlands to provide our investors with stable and sustainable returns,” she added.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.