KEPPEL DC REIT
AJBU.SI
Keppel DC REIT - Acquisition of data centre in Milan
- Keppel DC REIT (KDCREIT) announced that it has entered into a share purchase agreement to acquire a data centre located at Via Bisceglie 71, 73, 75, Milan, Italy, for an agreed property price of EUR37.3m (~S$57.3m).
- This asset is a four- storey freehold property with a total lettable area of 15,365 sq m and is currently leased to one of the world’s largest telecommunications companies until 31 Dec 2027.
- The lease shall be renewed for an additional six-year term thereafter unless the client notifies the landlord otherwise.
- KDCREIT, being the purchaser, will also be granted a rent top-up for the period from the completion date or 30 Sep 2016, whichever is earlier, to 31 Dec 2018.
- The expected date of completion is in 3Q16. Upon completion, KDCREIT’s portfolio WALE would be lengthened further from 8.7 years to 9.3 years.
- On a pro forma basis, assuming the acquisition is funded fully by debt, KDCREIT’s FY15 DPU would have increased by 2.6% from 6.51 S cents to 6.68 S cents.
- We maintain our BUY rating and S$1.27 fair value estimate for now.
Wong Teck Ching Andy CFA
OCBC Investment
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http://www.ocbcresearch.com/
2016-08-12
OCBC Investment
SGX Stock
Analyst Report
1.270
Same
1.270
