Keppel DC REIT will acquire effective interests in 2 data centers in the Tokyo area for approximately ¥168.4 billion, with completion expected in the fourth quarter of 2026. Japan is expected to account for a significantly larger share of the portfolio following the acquisition.
Keppel DC REIT has indirectly entered into an agreement with the seller to acquire an aggregate 90% effective interest in Tokyo Data Center 4 and Tokyo Data Center 5, which are primarily located in Inzai City. The acquisition price for the combined 90% effective interest in the 2 facilities is approximately ¥168.4 billion (approximately US$1.05 billion), while the acquisition price on a 100% basis is set at approximately ¥190.0 billion (approximately US$1.19 billion). The existing operators of the 2 facilities will each retain a 10% interest. The remaining 1.38% interest in Japan is expected to be held through Keppel Japan KK.
Acquisition completion is expected in the fourth quarter of 2026, with immediate accretion to DPU (distribution per unit) expected. Following the acquisition, investment exposure to the Japanese market will increase, with growth opportunities expected from rental revisions and contractual provisions. Japan's share of total portfolio rental income is also expected to increase from 9% as of 30 June 2026 to 23% following the acquisition.