Keppel DC REIT (AJBU) said on Sep, 1 2026 that it has entered into agreements to acquire an 88.62 % effective stake in Tokyo Data Centre 4 and Tokyo Data Centre 5 in Inzai City, Greater Tokyo, for JPY 168.4 billion (about 1.37 billion Singapore dollars). The deal forms part of a wider transaction that values the two freehold hyperscale colocation facilities at JPY 190.0 billion (about 1.55 billion Singapore dollars).
The properties, completed in 2021 and 2024, are fully occupied by four investment-grade tenants and feature average annual rent escalations of roughly 2.8 %. Tokyo Data Centre 4 has a weighted average lease expiry (WALE) of about 4.5 years, while Tokyo Data Centre 5 has a WALE of about 10.6 years.
Keppel DC REIT plans to fund the purchase with approximately 591.1 million Singapore dollars from a private placement of new units (43 % of the outlay), 788.6 million Singapore dollars equivalent of Japanese-yen denominated debt (57 %) and 11.7 million Singapore dollars in new units issued to the manager as an acquisition fee. Completion is targeted for the fourth quarter of 2026.
Pro forma figures indicate the transaction will lift FY2025 distribution per unit by 2.6 % to 10.649 Singapore cents and raise net asset value per unit from 1.71 to 1.75 Singapore dollars. Aggregate leverage is expected to rise from 34.0 % to about 38.0 % post-acquisition.
The acquisition strengthens Keppel DC REIT’s presence in Japan, increasing the contribution of its Japanese assets to about 23 % of portfolio rental income and expanding its total assets under management to roughly 7.6 billion Singapore dollars across 27 data centres in 10 countries.
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