Keppel DC REIT, based in Singapore, has recently completed the $135m acquisition of maincubes Data Centre in the Frankfurt region, Germany. The newly-completed four-storey freehold facility, located in Offenbach am Main, has approximately 126,800 sqft of lettable area and brings the total value of assets under management to some $1.65bn with aggregate lettable area of approximately 1,044,040 sq ft across 14 data centres.
Keppel DC REIT mentioned analysts’ views of the Frankfurt market which is experiencing high demand from hyper-scale cloud providers, managed service providers as well as financial services and trading firms.
“Factors such as Brexit and the European Union’s General Data Protection Regulation are expected to further drive demand for quality data centre space in top European markets,” the company said.
As Keppel DC REIT closed the acquisition, it has also started a 15-year triple-net master lease agreement with maincubes One GmbH1. The lease will lengthen the REIT’s portfolio weighted average lease expiry (WALE) to 9.8 years, and further enhance income stream stability.
Chua Hsien Yang, CEO of Keppel DC REIT Management, said: “The commencement of the 15-year long-term master lease will strengthen Keppel DC REIT’s income stream, and establish the REIT’s foothold in one of the key data centre hubs in Europe. This is in line with our aim to diversify the REIT’s geographical profile.”