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Keppel DC REIT enters Japanese market with purchase of hyperscale data center in Tokyo | News

Keppel DC REIT enters Japanese market with purchase of hyperscale data center in Tokyo | News

Keppel DC REIT Management, as manager of Keppel DC REIT, and Keppel are paying ¥23.4 billion ($145 million) to acquire a 100 percent stake in a full-core data center in Tokyo.

The freehold multi-story property, named Tokyo Data Centre 1, was completed in 2019 with a net lettable area of ​​190,166 square feet. It is master leased on a triple-net basis to a Fortune Global 500 company and hyperscaler. Keppel said the remaining lease term of approximately seven years will provide an opportunity for positive rent inversion and potential for further organic growth on the back of growing demand for generative AI and tight data centre supply in Japan.

The total purchase price represents a 2.5 percent discount on the property’s ¥24 billion ($149 million) value. Keppel DC REIT will have an effective interest of 98.47 percent in the property, with the remaining effective interest of 1.53 percent held by Keppel.

“Our first acquisition in Japan,