All three research houses are positive on the deal as it is expected to be DPU-accretive despite the manager’s intentions to fund it 100% by way of equity. This will be accomplished using net proceeds of about $298.9 million from a private placement exercise of 224 million new units, as well as remaining net proceeds from its Oct 2016 pro-rata preferential offering.
SINGAPORE (May 8): OCBC Investment Research and Phillip Capital are upgrading their calls on Keppel DC REIT (KDC REIT) to “buy” and "accumulate" with a fair value and target price of $1.54 and $1.51, respectively, following news of the REIT’s acquisition of Kingsland Data Centre for $141.2 million.
Meanwhile, CGS-CIMB Securities maintains its “add” call on the trust with a higher target price of $1.49 compared to $1.47 previously.
