SINGAPORE - Keppel DC REIT will acquire Germany's mainCubes Data Centre for €84.0 million (approximately S$130.0 million) as it plans to expand its data centre footprint, the company said on Wednesday.
The acquisition, of which 10 per cent will be paid upon contract signing, is expected to be completed in 2018, the release said.
mainCubes DC, nearly 10 kms from Frankfurt, sits on a 5,596 sqm of freehold land. The four storey data centre, which will be completed by 2018, will have a total lettable area of approximately 11,780 sqm.
The acquisition is backed by a 15-year triple-net lease, which will commence on building completion, provide for annual rental hikes and three renewal options of five years each, the release said.
The acquisition will enhance the REIT's income stream stability by lowering portfolio risk through geographical diversification, Mr Chua Hsien Yang, CEO of Keppel DC REIT Management Pte Ltd said.
"Germany holds a key position in the data centre market in Europe as its excellent data centre infrastructure and ease of doing business make it a compelling data centre hub," he added.