The Keppel Group marked a milestone on 12 December 2014 with the successful listing of Keppel DC REIT, the first ever data centre real estate investment trust (REIT) to be listed in Asia and in Singapore on the Mainboard of the Singapore Exchange. It was also the largest REIT Initial Public Offering (IPO) on the Singapore Exchange for the year-to-date with $512.9 million raised.
The units of Keppel DC REIT debuted strongly upon commencement of trading, opening at $0.98 each, 5.4% above Keppel DC REIT's IPO price of $0.93 per unit. Trading continued to be robust throughout the trading day, with 105 million units exchanging hands and reaching an intra-day high of $0.985.
Keppel DC REIT's IPO was approximately 9.6 times subscribed while institutional investors' indications of interest for the placement tranche amounted to $4.7 billion, representing 24.4 times subscription. Concurrently but separate from the offering, Keppel DC REIT also secured $270 million worth of commitment from nine cornerstone investors.
Speaking at the listing ceremony, Guest of Honour Ms Jacqueline Poh, Managing Director of Infocomm Development Authority of Singapore, congratulated Keppel DC REIT on its successful listing and noted the pivotal role that data centres play in the digital economy. "Data centres are the backbone of the digital economy and play an important role in enabling activities such as cloud computing and analytics. As an established, homegrown data centre player in Singapore, Keppel has indeed contributed to the data centre industry here," she said.
Mr Chua Hsien Yang, CEO of Keppel DC REIT Management, said, "We would like to thank our Unitholders for their support towards Keppel DC REIT. The strong trading performance on its first trading day signals confidence in the growth potential of the REIT. With Keppel Telecommunications & Transportation (Keppel T&T) as a committed Sponsor providing a visible acquisition pipeline, Keppel DC REIT is poised to capitalise on and benefit from the growth in demand for data centres within key data centre hubs in Asia-Pacific and Europe."
As the first data centre REIT listed in Asia, Keppel DC REIT will provide investors with an opportunity to gain exposure to the data centre asset class via the IPO Portfolio. The data centre industry is backed by strong fundamental growth drivers such as a rise in data creation and storage needs, the growing adoption of cloud computing, increasing compliance and regulatory requirements on data security, and increasing outsourcing of data centre requirements.
The data centres in Keppel DC REIT's portfolio have been designed and built to attract well-established customers. As of 30 September 2014, the data centres in its portfolio enjoy a high occupancy rate of 93.5% and a high customer retention rate of 97.8% from a diverse customer base that includes Fortune 500 and S&P 100 companies, government related entities, MNCs and financial institutions.
Moreover, the REIT benefits from a balanced lease profile comprising co-location arrangements as well as double-net and triple-net leases, providing for both stability and opportunities for rental reversions.
Keppel DC REIT's portfolio consists of the following properties:
|Location||Data centre Asset|
|Sydney, Australia||Gore Hill Data Centre|
|Brisbane, Australia||iseek Data Centre|
|Cyberjaya, Malaysia||Basis Bay Data Centre|
|London, the United Kingdom||GV7 Data Centre|
|Amsterdam, the Netherlands||Almere Data Centre|
|Dublin, Ireland||Citadel 100 Data Centre|
(Front row from left) Mr Chua Hsien Yang, CEO of Keppel DC REIT Management; Ms Jacqueline Poh, MD of Infocomm Development Authority of Singapore; Mr Magnus Böcker, CEO of Singapore Exchange; Ms Chan Shui Har, CFO of Keppel T&T; Mr Chan Hon Chew, Deputy Chairman of Keppel DC REIT and CFO of Keppel Corporation; Mr Loh Chin Hua, Chairman of Keppel T&T and CEO of Keppel Corporation; and Mr Thomas Pang, CEO of Keppel T&T with the Keppel DC REIT team at the listing ceremony on 12 December 2014
With more than 13 years of experience in mergers and acquisitions, real estate investments, fund management, business development and asset management in the Asia-Pacific real estate sector, Mr Chua Hsien Yang has been appointed CEO of Keppel DC REIT Management.
As CEO, Mr Chua will drive the growth of Keppel DC REIT and lead its efforts to capitalise on new opportunities in the data centre industry.
Mr Chua joined the Keppel Group in 2008 with Keppel REIT Management Limited, the manager of Keppel REIT, where he last held the position of Senior Vice President (Investment). Over the span of six years in Keppel REIT Management Limited, he led the completion of transactions worth approximately $7 billion in total.
Mr Chua Hsien Yang, CEO of Keppel DC REIT Management