Keppel divests data centre in Frankfurt for $120.9 million

The property, Keppel DC Frankfurt 1, will be divested to a wholly-owned subsidiary of Iron Mountain.
The property, Keppel DC Frankfurt 1, will be divested to a wholly-owned subsidiary of Iron Mountain.PHOTO: KEPPEL CORP

SINGAPORE (THE BUSINESS TIMES) - Keppel Corp is proposing to divest a data centre facility located in Frankfurt, Germany for a cash consideration of €76 million (S$120.9 million), the conglomerate said on Thursday (July 8).

The property, Keppel DC Frankfurt 1, will be divested to a wholly-owned subsidiary of Iron Mountain. It was previously held under Calcium DC, a 60-40 joint venture between Alpha DC Fund and Keppel Data Centres Holding.

Keppel expects the divestment will be completed in the third quarter of this year. It added that it does not expect the divestment to have any material impact on the net tangible assets per share or earnings per share of the company for the current financial year.

The book value of the property as at Dec 31 last year is €63 million, Keppel said.

Shares of Keppel Corp closed at $5.27 on Wednesday, down 15 cents, or 2.8 per cent.