Keppel DC REIT has announced an upsized S$625m private placement to fund its acquisition of two hyperscale colocation data centres in Greater Tokyo. This move is set to push Singapore’s 2026 secondary fundraising by SGX-listed companies beyond S$4b, marking the highest annual total since 2021. The placement, initially launched to raise at least S$600m, was increased due to strong investor demand, with the transaction being approximately 3.4 times covered after upsizing.
Secondary fundraising in Singapore has totalled S$3.57b in the first eight months of 2026. The inclusion of Keppel DC REIT’s placement, scheduled for 10 September, will surpass the S$4b mark. This trend highlights the significant role of secondary fundraisings, which have accounted for about 80% of the nearly S$90b raised through equity capital markets since 2016.
Keppel DC REIT’s acquisition involves an 88.62% interest in the data centres, valued at approximately JPY168.4b (S$1.37b). The acquisition price represents a 2.1% discount to the assets’ valuation. The data centres are fully occupied by investment-grade clients, offering growth potential through rent escalations and market rent reversions.
The acquisition will increase Japan’s contribution to Keppel DC REIT’s portfolio rental income from 9% to 23%, whilst maintaining Singapore as the largest market. The transaction is expected to enhance portfolio resilience and diversification, with assets under management rising to approximately S$7.6b across 27 data centres in 10 countries.
