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Keppel DC REIT sells Australian data centre to iseek

Keppel says it continuous to review and selectively consider divestments to ensure an optimal portfolio mix.

By João Marques Lima

Co-founder and Editor, The Tech Capital

3 Mins

September 20, 2021 | 10:28 AM BST

Keppel DC REIT has sold its Brisbane, Australia, facility to iseek Pty Ltd in line with Keppel DC REIT’s strategy to continually review and selectively consider divestments to ensure an optimal portfolio mix.

Subject to final adjustments including reimbursements of certain capital expenditures carried out by the Trust in accordance with the terms of the sale and purchase agreement (the SPA), the consideration to be paid by iseek to Keppel DC REIT for the property is AUD34.5 million (approximately S$35.3 million).

The ness comes following Keppel DC REIT’s financial statements and related announcements dated 26 July 2021 which disclosed the grant of an option to iseek Pty Ltd to purchase Keppel DC REIT’s 100% interest in the iseek Data Centre located in Brisbane, Keppel DC REIT Management Pte. Ltd., in its capacity as manager of Keppel DC REIT.

Keppel DC REIT indirectly holds the property through iseek Facilities Pty Ltd, a wholly-owned subsidiary of KDCR Australia Trust No. 1, which is managed by KDCR Australia No. 1 Pty Ltd in its capacity as trustee of the Trust.

Keppel DC REIT indirectly holds 100% of the issued securities in both the Trust and the Trustee. Each of the Trust and the Trustee does not have other substantive asset or business save for the Property.

Pursuant to iseek’s exercise of the Option, the SPA has been entered into for the divestment of the property through the sale of 100% of the issued securities of the Trust and the Trustee to iseek.

Subject to final adjustments including reimbursements of certain capital expenditures carried out by the Trust in accordance with the terms of the SPA, the consideration to be paid by iseek to Keppel DC REIT for the property is AUD34.5 million (approximately S$35.3 million).

Based on the latest valuation as at 30 June 2021 by Cushman & Wakefield (Valuations) Pty Ltd, an independent valuation firm appointed by the Trustee, the assessed market value of the 100% leasehold interest in the property was AUD34.0 million (approximately S$34.8 million), using the income capitalisation and discounted cash flow and direct comparison methods.

Based on the relative figures computed on the bases set out in Rule 1006 of the Listing Manual, the divestment of the property will be a “non-discloseable transaction” within the meaning of Rule 1008 of the Listing Manual.

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