Singapore-listed data centre real estate investment trust ( Reit ) Keppel DC Reit has taken a major step in its regional expansion strategy with the acquisition of Tokyo Data Centre 3, a newly built, freehold hyperscale facility in Inzai City, Greater Tokyo, for 82.1 billion yen ( US$555 million ).

Keppel DC Reit will hold a 98.47% effective interest, while Keppel Limited retains the remaining 1.53%. The acquisition adds a second data centre asset in Japan to Keppel DC Reit’s portfolio, strengthening its presence in the largest data centre hub in Asia-Pacific ( excluding China ).

The five-storey, Tier III-equivalent facility, strategically located in Inzai, one of Japan’s most connected data centre hubs, meets the latest seismic standards and is managed by a seasoned third-party operator with over 20 years of global experience.

Upon completion by end-2025, Keppel DC Reit’s portfolio will increase to 25 assets across 10 countries, with assets under management growing to S$5.7 billion ( US$4.44 billion ). Portfolio occupancy and lease expiry metrics will also improve, boosting resilience.

To fund the acquisition, Keppel DC Reit has launched a preferential offering to raise approximately S$404.5 million. Proceeds will also support asset enhancement in Singapore and debt reduction, with estimated pro forma distribution-per-unit accretion rising to 3.4% post-deployment.

Keppel DC Reit was listed on the Singapore Exchange in 2014 as the first pure-play data centre Reit in Asia.

“The accretive acquisition of Tokyo Data Centre 3 is aligned with our value creation strategy to pursue hyperscale opportunities in established data centre hubs,” says Loh Hwee Long, CEO of the manager of Keppel DC Reit. “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.”