Keppel DC Reit buys second data centre in Dublin for $101.3m

Keppel DC Reit's latest addition to its portfolio is the B10 Data Centre, located within the  Ballycoolin Business and Technology Park in Dublin, Ireland.
Keppel DC Reit's latest addition to its portfolio is the B10 Data Centre, located within the Ballycoolin Business and Technology Park in Dublin, Ireland.PHOTO: KEPPEL DC REIT

SINGAPORE - Keppel DC Reit said on Wednesday (Sept 13) it has acquired its second data centre in Dublin, Ireland, for 66 million (S$101.3 million).

The B10 Data Centre has a long weighted average lease expiry (WALE) of approximately 11.0 years and is 87.3 per cent leased to a global internet enterprise, IT services and telecommunications clients.

The facility is located within the Ballycoolin Business and Technology Park in Dublin, about 12 kilometres from the Dublin city centre. The data centre, which started operations in 2013, offers approximately 25,200 square feet of lettable area.

Mr Chua Hsien Yang, CEO of Keppel DC Reit Management, said the asset was a strategic addition to the Reit's portfolio given its strong tenant profile and long WALE, which provides income stability.

The Reit will also be able to reap operational synergies from its existing data centre, Keppel DC Dublin 1, said Mr Chua.

The acquisition is immediately accretive to Keppel DC Reit's distribution per unit (DPU). To illustrate, if Keppel DC Reit had completed the acquisition on Jan 1, 2016, and held it through to Dec 31 that year, its DPU would have increased by 6 per cent to 6.51 Singapore cents from 6.14 cents.

After the acquisition is completed, the Reit's aggregate leverage is expected to increase from 27.7 per cent to 32.4 per cent.

Its assets under management will increase to approximately S$1.53 billion with aggregate lettable area of some 917,240 sq ft across 13 data centres.