Keppel DC REIT Growing Fast- New Acquisition of Tokyo Data Centre and Preferential Offering.

Wow....great news for folks holding on to Keppel DC REIT ("KDCREIT"). KDCREIT just announced on September 23, 2025 that it will be acquiring a 98.47% stake in a freehold new data centre in Tokyo. This is a newly completed 5 storey data centre in 2025 that comes with a Fortune Global 500 client that has signed on for 15 years and granted an option to renew the lease for another 5 years at the end of the current lease term. 

1. Acquisition Overview

This acquisition is expected to be immediate yield accretive by 2.8% while maintaining a healthy debt leverage of 34.5% post acquisition. With the entry of this hyperscaler tenant, this property is expected to strengthen overall portfolio resilience and also provide even more diversification. This is a wonderful growth opportunity.

2. Method of Financing

The total acquisition cost of the new Tokyo data centre is expected to be S$708.3Mil. It will be funded via a mix of new JPY denominated debts and equity fund raising.

3. Key Details of the Preferential Offerings

The issuance price will be S$2.24 per unit on a 80 for 1000 units allotment ratio. As as September 23, 2025, the last market traded price of KDCREIT is S$2.36 per unit. The offer price is thus at a 5.1% discount to the market price.

4. Timetable of Preferential Offering

For those interested in the rights issue by KDCREIT, please take note of the above timeline so as not to miss the subscription. The last date and time for acceptance of the new units is on October 13, 2025 at 5.30pm (Monday).

a

5. Parting Thoughts- Will I subscribe to this Preferential Offering?

Well, this is after all a yield accretive deal so yes, I will be subscribing as long as the market price does not drop below S$2.24 per unit. As of September 23, 2025 morning, KDCREIT market price has increased to S$2.37 per unit after investors begin digesting news of the announcement.