Keppel DC REIT: Lawsuit filed against DXC Technology over alleged default

Singapore one-dollar bill, showing satellite dishSingapore one-dollar bill, showing satellite dish

Keppel DC REIT said Monday Keppel DC Singapore 1 (KDC), which is the master lessee of the data center at 25 Serangoon North Avenue 5 in Singapore, has commenced a lawsuit in Singapore’s High Court against DXC Technology Services Singapore.

The suit is over an alleged partial default of payment by DXC over the provision of co-location services at the facility, Keppel DC REIT said in a filing to SGX. 

The filing said DXC disputes its liability to make payment. 

In an email Tuesday, a DXC spokesperson told Shenton Wire, “We do not comment on any ongoing litigation matters.”

“While KDC, together with the [REIT’s] manager and DXC, have engaged in various commercial discussions and mediation, the parties have not been able to arrive at a mutually acceptable resolution,” Keppel DC REIT said. 

The amount under dispute is around S$14.8 million for the four-year period between 1 April 2021 and 31 March 2025, the filing said. 

Under the management agreement between Keppel DC REIT and KDC, a portion of KDC’s revenue generated by KDC’s management of the facility, such as co-location services, is payable to Keppel DC REIT, the filing said. 

The affected occupancy is around 0.4 percent of Keppel DC REIT’s total attributable lettable area as of end-December, with the disputed sum accounting for around 2.0 percent of its distributable income for 2021, the filing said.

KDC is a wholly owned subsidiary of Keppel Data Centres Holding, a joint venture held indirectly by Keppel Telecommunications and Transportation, which is the sponsor of Keppel DC REIT, and Keppel Land, the filing said. 

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