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SINGAPORE ― Singapore-listed data center real estate investment trust Keppel DC REIT and sponsor Keppel are set to buy a data center in Tokyo for 23.4 billion yen ($145 million), in the REIT’s first Japanese acquisition.
The figure represents a 2.5 percent discount to the 24 billion yen valuation of Tokyo Data Center 1, the REIT’s manager ― Keppel DC REIT Management ― said in a statement on Thursday.
The REIT’s manager said Japan was Asia’s second-largest data center hub and was set to expand at a compounded annual growth rate of over 10 percent from 2024 to 2028 driven in part by the proliferation of generative artificial intelligence.
“Japan is a core market and the addition of Tokyo Data Center 1 will further strengthen our portfolio’s geographical, as well as income diversification,” the REIT’s manager’s CEO, Loh Hwee Long, said in the statement.
Upon completion of the acquisition in the third quarter, Keppel DC REIT will own 98.47 percent of the data center, with Keppel holding the remainder.
The REIT’s manager said Tokyo Data Centre 1 will be funded through yen-denominated debt.
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