Keppel DC REIT Buys Two Data Centers in Guangdong, China for $200M+


Keppel DC REIT a large data center REIT from Singapore, has acquired two data centers in Guangdong, China for more than RMB 1,380.6 million (over US $200M). The two deals come after Keppel DC REIT announced its first acquisition in China, Guangdong Data Centre, in July 2021. Keppel DC REIT will hold 62.9 percent of its assets in Asia when the recent deals are completed.

Keppel DC REIT has agreed to buy two data center facilities from Guangdong Bluesea Data Development (Bluesea) and its parent business, Guangdong Bluesea Mobile Development.

The two seven-story colocation data centers, which have a gross floor area of roughly 40,920 sqm (440,462 sq ft), are developed in line with the Code for Design of Data Centre Grade A GB, which is China’s highest level for data centers.

One of China’s eight national computing centers, the Guangdong-Hong Kong-Macao Greater Bay Area, has been selected to promote the country’s digital development. The Guangdong data center market, as a key technological hub and one of China’s most established data center markets, is projected to develop even more as demand for high-quality, efficient data centers would rise, and the sector would also benefit from a tighter supply of such key infrastructure.

Guangdong DC 2 and Guangdong DC 3

Following the acquisition, the two data center facilities will be known as Guangdong Data Centre 2 and Guangdong Data Centre 3 (Guangdong DC 2 and Guangdong DC 3). Guangdong DC 2 is fully equipped, and payment will be provided in full upon conclusion of the legal process. Guangdong DC 3 will be outfitted, and it is projected to be finished in the third quarter of 2023.

While Guangdong DC 3 will receive a partial payment, Bluesea will pay Keppel DC REIT rent for the building shell and interest on the partial payment, with the balance due when the fit-out works are finished. The properties will be leased to Bluesea for 15 years on a triple net basis.

Guangdong DC 2’s acquisition is planned to be completed in the second half of 2022, while Guangdong DC 3’s acquisition is expected to be completed in the third quarter of 2023.

“Data centers are a critical part of the digital infrastructure that supports many other industries and growth areas,” said Ms. Anthea Lee, CEO at Keppel DC REIT Management. “The acquisition will increase the number of data centers in the portfolio that are leased on a master leased basis resulting in higher portfolio weighted average lease expiry and occupancy.”