SINGAPORE (Oct 6): Keppel DC REIT has acquired a 100% stake in a data centre located in Cardiff, United Kingdom, for £34 million (S$59.3 million).

The data centre is currently leased to one of the largest global cloud services providers, on a triple-net lease for 15 years which started in June, according to a filing to the Singapore Exchange on Thursday.

Located south of Dunleavy Drive, the two-storey data centre facility is connected to a three-storey office block and has a total lettable area of 7,380 sqm.

Based on an independent valuation by CBRE, the 100% stake in the data centre had a market value of £34.0 million as of Sept 15.

Keppel DC REIT’s manager said that the acquisition is in line with its strategy of acquiring quality income-producing data centre properties that enhance total return to unitholders, and intends to fully fund the acquisition through bank borrowings.

The manager also added that the acquisition will increase its proportion of master-leased facilities to 35% from the current 31.6%, provide the REIT with a long-term income stream and annual rental escalations that provide rental and capital value growth opportunities.

Furthermore, the new property adds another established client to the REIT’s existing base, and is expected to increase the portfolio’s weighted average lease expiry from 8.7 to 9.5 years.

Units in Keppel DC REIT closed 0.8% lower at S$1.21.