Keppel DC Reit Subsidiary Enters into Sale and Purchase Agreement for Basis Bay Data Centre
KEPPEL DC Real Estate Investment Trust (Reit) is divesting Basis Bay Data Centre in Cyberjaya, Malaysia, for RM55.6 million (S$16.9 million).
Background
On Thursday (Jan 2), Keppel DC Reit’s manager said that Basis Bay Capital Management, a subsidiary of the Reit, had entered into a sale and purchase agreement on Dec 31 with Basis Bay Services MSC, an unrelated third party which is also the current master lessee and facility manager of the property.
Terms of the Agreement
Keppel DC Reit’s share of the consideration paid by Basis Bay Services MSC is RM55.1 million, based on its 99 per cent shareholding in Basis Bay Capital Management and the divestment consideration.
Valuation
According to the latest valuation by JLL as at Dec 1, the assessed market value of Keppel DC Reit’s 99 per cent freehold interest in the property was RM53.7 million. Its share of the consideration is thus 2.6 per cent above the assessed market value.
Timeline and Impact
The divestment is expected to be completed around the third quarter of 2025. It is in line with the Reit manager’s “proactive asset management strategy to optimise portfolio performance”. The divestment is not expected to have any material impact on Keppel DC Reit’s net asset value and distribution per unit for the financial year ending Dec 31, 2025.
Market Reaction
Units of Keppel DC Reit ended Thursday 1.4 per cent or S$0.03 higher at S$2.21.
Conclusion
The divestment of Basis Bay Data Centre is a strategic move by Keppel DC Reit to optimize its portfolio performance and generate value for its unitholders. The transaction is expected to be completed in the third quarter of 2025 and is not expected to have any material impact on the Reit’s net asset value and distribution per unit.
FAQs
Q: What is the consideration for the divestment of Basis Bay Data Centre?
A: The consideration is RM55.6 million (S$16.9 million).
Q: What is Keppel DC Reit’s share of the consideration?
A: Keppel DC Reit’s share of the consideration is RM55.1 million, based on its 99 per cent shareholding in Basis Bay Capital Management and the divestment consideration.
Q: What is the expected completion date of the divestment?
A: The divestment is expected to be completed around the third quarter of 2025.
Q: Is the divestment expected to have any material impact on Keppel DC Reit’s net asset value and distribution per unit?
A: No, the divestment is not expected to have any material impact on Keppel DC Reit’s net asset value and distribution per unit for the financial year ending Dec 31, 2025.
