Keppel DC REIT completes acquisition of a data centre in Italy

It comprises three four-storey buildings.

With its goals to expand its footprint in Europe, Keppel DC REIT announced that it has completed its acquisition of a data centre located in Milan, Italy.

It has acquired the data centre's shell and core building for $41.5m.

The trust said the acquisition will enhance its income stream stability with a 12-year double-net lease that includes annual rental escalations and a six-year renewal option.

For Keppel DC REIT Management CEO Chua Hsien Yang, the acquisition would be a great addition to the company’s portfolio, with its location as an emerging regional IT hub that is well connected to other European markets.

“This acquisition complements the REIT’s existing portfolio profile and growth plans by increasing the proportion of European assets and master-leased facilities. The addition of the shell and core asset on a double-net basis will require minimal capital expenditure, and also adds a well established client to the REIT’s client base,” Chua said.

Meanwhile, the group claimed that this acquisition brings the trust's aggregate leverage a 29.1% to 32.5% increase, with its assets under management jumping to $1.13b.