According to JP Morgan, the transaction is structured in three steps.
Keppel DC REIT’s proposed acquisition of two data centres, SGP DC 7 and SGP DC 8 is accretive to distributions per unit (DPU) of between 6.7% and 11.1% depending on various conditions and despite a $350 million payout to the sellers of the data centres in addition to the payment of the upfront land premium of $17.8 million to JTC. The net property income yield is likely around 6.5%, as indicated in a JP Morgan report.
JP Morgan has summarised the conditions described in a 46-page announcement by Keppel DC REIT’s manager.
