Singapore-listed Keppel DC REIT has bought a 100% interest in a freehold property with two data centre buildings in De Hurk, the largest business park in Eindhoven, the Netherlands, for €37.2 million (approximately S$59.9 million).
Keppel DC REIT acquired the property from a fund affiliated with MCAP Global Finance (UK) LLP, the European subsidiary of New York headquartered Marathon Asset Management LP.
The property, which is located at Dillenburgstraat 25A-25E, 25E1, 25F, 25G and 25J-25M, 5652 AM, will be named Eindhoven Campus.
It is Keppel DC REIT’s third asset in the Netherlands, and further strengthens its foothold in this key data centre market in Europe.
Strategically located close to Eindhoven’s city centre and international airport, the property is well connected to the Netherland’s motorway network. Comprising two shell and core data centre buildings as well as a warehouse and an ancillary office building within the site, Eindhoven Campus has a combined net lettable area of approximately 83,841 sq ft and is fully leased with a WALE of 6.8 years by leasable area and 8.5 years by rental income. The data centre space is leased to a global leading IT services provider.
Ms Anthea Lee, CEO of Keppel DC REIT Management Pte. Ltd., the Manager of Keppel DC REIT, said, “Being one of the top four data centre markets in Europe and the eighth largest data centre market globally, the Netherlands is a strategic market for Keppel DC REIT. We are pleased to be able to add to our portfolio a quality and green data centre located in the key technology hub of Eindhoven. With this acquisition, we also diversify our portfolio base with the addition of a well-established data centre client and we look forward to establish strong ties with this client. With this asset, we continue to leverage the strong fundamentals of the Netherlands to provide our investors with stable and sustainable returns.”
Including the strategic addition of Eindhoven Campus, Keppel DC REIT’s portfolio occupancy rate will improve from 98.0% as at 30 June 2021 to 98.1%, while weighted average lease expiry will remain unchanged at 6.5 years.