Keppel DC REIT acquires Netherlands data center property for around S$60M

Euro coinsPhoto by Leslie Shaffer

Keppel DC REIT has acquired a Netherlands data center property for 37.2 million euros, or around S$59.9 million, from a fund affiliated with MCAP Global Finance (UK), the European subsidiary of U.S.-based Marathon Asset Management, the REIT said in a filing to SGX Monday.

A 7 July independent valuation of the property by CBRE Valuation & Advisory Services put the market value of the property at 35.4 million euros, the filing said.

The deal will be funded with the proceeds of the recent equity fundraising and by euro-denominated debt, Keppel DC REIT said.

The acquisition is expected to be accretive to distribution per unit, the REIT said.

The property is located in De Hurk, the largest business park in Eindhoven, the Netherlands, and it will be called Eindhoven Campus, the filing said. The site, set near the city center and an international airport, has the two data center buildings, a warehouse and an ancillary office building, the filing said.

The data center space is leased to a global leading IT services provider, Keppel DC REIT said.

“Being one of the top four data center markets in Europe and the eighth largest data centre market globally, the Netherlands is a strategic market for Keppel DC REIT. We are pleased to be able to add to our portfolio a quality and green data centre located in the key technology hub of Eindhoven,” Anthea Lee, CEO of the REIT’s manager said in the statement.

Several transatlantic submarine cables are linked directly to the Netherlands, making the country a good point for data connectivity between the U.S. and Europe, the statement said, adding the country also hosts two of the top-10 largest internet exchanges globally.

“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.