Keppel DC REIT buys second data centre in Dublin for $101.3 mln

Keppel DC REIT on Wednesday said it acquired a data centre in Dublin, Ireland for 66 million euros.

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Keppel DC REIT on Wednesday said it acquired a data centre in Dublin, Ireland for 66 million euros ($101.3 million).

B10 Data Centre, Keppels DC's second colocation data centre in Dublin, has a long weighted average lease expiry of about 11 years and is 87.3 percent leased to leading global internet enterprise, IT services and telecommunications clients.

The facility is located within the Ballycoolin Business and Technology Park in Dublin and is well-served by major transportation modes, it said in a statement.

"Apart from enhancing its offering in a key data centre hub, the REIT will be able to reap operational synergies from its existing data centre, Keppel DC Dublin 1," said Chua Hsien Yang, CEO of Keppel DC REIT Management.

According to research firm Ernst and Young, Dublin has emerged as one of the leading financial centres in Europe for banking and financial services companies looking to relocate from the United Kingdom post-Brexit.

The acquisition is immediately accretive to Keppel DC REIT's distribution per unit.

"The addition of the new facility will diversify the REIT's income stream, while its portfolio weighted average lease expiry remains long at approximately 9.4 years," said Hsien Yang.

The acquisition, which completed the same day, was funded by debt.

Post completion, the REIT's aggregate leverage is expected to increase from 27.7 percent to 32.4 percent.

Assets under management has increased to about $1.53 billion with aggregate lettable area of about 917,240 square feet across 13 data centres.

Shares in Keppel DC REIT fell 0.4 percent to S$1.29 on the Singapore Exchange.

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