Pranav Hotkar
Singapore, September 22, 2025- Keppel DC REIT, a Singapore-listed real estate investment trust specializing in data centers, has announced the acquisition of Tokyo Data Centre 3 in Inzai City, Greater Tokyo. The newly built, five-story hyperscale facility is valued at 82.1 billion Japanese yen (~USD 707 million / USD 555 million) and marks Keppel DC REIT’s second data center asset in Japan.
The facility is fully pre-leased for 15 years to a leading global hyperscaler, a Fortune Global 500 client, with built-in annual rent escalations. It features a high-efficiency design suitable for AI workloads and is expected to enhance portfolio resilience through diversified rental income. Keppel DC REIT will hold a 98.47% effective interest in the asset, with parent company Keppel Ltd. retaining the remaining 1.53% stake.
To fund the acquisition, Keppel DC REIT is launching a non-renounceable preferential offering to raise USD 404.5 million, priced at S$2.24 per unit, a 5.2% discount to recent trading prices. Of the proceeds, USD 229.8 million will be allocated to the purchase, while the remainder will support asset enhancements, lease extensions, and debt repayment. The transaction is expected to increase outstanding units by 8%, to roughly 180.6 million units.
Following the acquisition, Keppel DC REIT’s assets under management are projected to rise to USD 5.7 billion across 25 data centers in 10 countries. Portfolio occupancy will increase slightly from 95.8% to 95.9%, and the weighted average lease expiry will extend from 6.92 to 7.2 years. The deal is expected to be immediately earnings-accretive, boosting FY2024 distribution per unit by 2.8% to 9.712 cents on a pro forma basis.
CEO Loh Hwee Long said, "The accretive acquisition of Tokyo Data Centre 3 is aligned with our value creation strategy to pursue hyperscale opportunities in established data centre hubs. The favourable demand-supply dynamics for data centres in Japan and the country's strategic position as an interconnect location between Asia and the Americas make it a compelling market for long-term growth. We are pleased to expand our presence in Japan with another high-quality asset that will enhance our portfolio and strengthen our income diversification."
The move underscores the growing demand for digital infrastructure in Asia, driven by AI, cloud computing, and data sovereignty requirements. It follows Keppel DC REIT’s recent USD 8.4 million investment in two AI-ready data centers in Singapore, further positioning the REIT to capitalize on the global data center boom.
