Keppel DC REIT to sell 261.1 million shares at 93 cents each

Download the prospectus here (SGX):


SINGAPORE (Dec 5): Keppel DC REIT will sell about 261.1 million units at an offer price of 93 cents each to raise $243 million at its IPO, according to the REIT’s manager.

The IPO will consist of an international placement of about 207.4 million units to investors, including institutional and other investors in Singapore and an offering of 53.8 million units to the public in Singapore. There is also an over-allotment option.

Keppel DC REIT’s IPO portfolio focuses on income-producing data centre properties and will comprise eight data centres located in seven key data centre hubs across Asia-Pacific and Europe. The IPO portfolio has an aggregate Lettable Area of 509,913 sq ft and an aggregate appraised value of $1 billion.

Keppel DC REIT is offering investors a distribution yield of 6.8% in Forecast Year 2015 and 7.1% in Projection Year 2016 with a distribution growth of 4.5%.

Keppel DC REIT Management said the placement tranche drew strong demand from institutional investors. The indications of interest received were valued at $4.7 billion, representing 24.4 times of the placement tranche.

Shares at 93 cents each

Public offer: 9.00pm, Friday, 5 December 2014
Offer close: 12.00 noon, Wednesday, 10 December 2014
Start trading: 2.00pm, Friday, 12 December 2014

Keppel DC REIT said it has also secured $270 million worth of commitment from nine cornerstone investors comprising AEW Asia Pte, DBS Bank ( Financial Dashboard)., DBS Bank on behalf of certain private banking clients, Eastspring Investments (Singapore), Fortress Capital Asset Management (M), Gordon Tang, Lim Chap Huat, Myriad Asset Management on behalf of Myriad Opportunities Master Fund, and Wellington Management Company, LLP on behalf of various investment advisory clients.

Collectively, these cornerstone investors will subscribe for an aggregate of 290.3 million units at the offer price. Following the completion of the offering sponsor, Keppel T&T, as well as Keppel Land ( Financial Dashboard), will hold 30.1% and 4.9% of the total units in Keppel DC REIT.

By PC Lee /   | December 5, 2014 : 6:57 PM MYT


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