Keppel DC REIT, a data center-focused real estate investment trust in Singapore, today announced that it has completed the acquisition of a 100% interest in a freehold property with two data center buildings in Eindhoven, the Netherlands, for €37.2m ($44.2m) from Marathon Asset Management’s European fund MCAP Global Finance (UK) LLP. Specifically, the data center buildings are located in De Hurk, which is the largest business park in Eindhoven.
Separately, 10 days prior, Keppel DC REIT announced that it divested its iseek Data Centre located in Brisbane, Australia, for A$34.5m ($25.0m) to iseek Pty Ltd, a data center operator backed by Amber Infrastructure.
Eindhoven, Netherlands – Keppel DC REIT Acquisition
Keppel DC REIT will name its acquisition in the Netherlands as Eindhoven Campus. The property is situated on Dillenburgstraat, including units 25A-25E, 25E1, 25F, 25G and 25J-25M. In turn, this location positions the data center campus 1.9 miles (3.0 kilometers) from Eindhoven’s city center and 2.5 miles (4.0 kilometers) from the Eindhoven Airport.
Buildings
Keppel DC REIT’s Eindhoven Campus comprises two powered shell data center buildings. Additionally, there is a warehouse and an ancillary office building on-site. Overall, the Eindhoven Campus has a combined net lettable area (NLA) of 83.8k sqft (7.8k sqm).
Leasing
The Eindhoven Campus is fully leased with a weighted average lease expiry (WALE) of 6.8 years by leasable area and 8.5 years by rental income. Specifically, the data center space is leased to a global IT services provider.
Connectivity
Eindhoven benefits from having a presence from the Neutral Internet Exchange (NL-IX), which is one of the top 10 largest internet exchanges in the world. Notably, the NL-IX has an ecosystem of 235+ high-technology companies.
Valuation
Prior to completing the acquisition, Keppel DC REIT appointed CBRE to conduct an independent valuation of the Eindhoven Campus. CBRE’s valuation was €35.4m, which is 5% lower than Keppel DC REIT’s purchase price of €37.2m.
Presence in the Netherlands
The Eindhoven Campus is Keppel DC REIT’s third asset in the Netherlands, with the other two being:
- Almere, Netherlands: 118k sqft of lettable area, 100% leased on a double-net basis to a single tenant. Also, Keppel DC REIT values this facility at €94.2m
- Amsterdam, Netherlands: 142k sqft of lettable area, 99% leased on a double-net basis to 10 tenants. Additionally, Keppel DC REIT values this facility at €28.0m
Brisbane, Australia – Keppel DC REIT Divestment
Keppel DC REIT’s iseek Data Centre in Brisbane, Australia is located in the Export Park Precinct of Brisbane Airport. iseek Data Centre is a two-story building that comprises 12.4k sqft of lettable area. The facility is 100% leased on a double-net basis to iseek, with a WALE of 10 years.
Valuation
Prior to completing the divestment, Keppel DC REIT’s latest independent valuation of the iseek Data Centre from Cushman & Wakefield, marked the asset at A$34.0m ($24.7m). Therefore, Keppel DC REIT is selling the iseek Data Centre for 1.5% above its latest valuation mark.
Presence in Australia
Following Keppel DC REIT’s divestment of the iseek Data Centre, the company will continue to own three data centers in the market of Sydney, Australia. Specifically, these three facilities are:
- Gore Hill: 91.0k sqft of lettable area, 100% leased on a triple-net basis to three tenants. Also, Keppel DC REIT values this facility at A$208.5m ($151m)
- Intellicentre 2: 87.9k sqft of lettable area, 100% leased on a triple-net basis to a single tenant. Additionally, Keppel DC REIT values this facility at A$59.0m ($42.8m)
- Intellicentre 3 East: 86.0k sqft of lettable area, 100% leased on a triple-net basis to a single tenant. Also, Keppel DC REIT values this facility at A$26.0m ($18.9m)
