Keppel DC REIT has successfully concluded its fully underwritten, non-renounceable preferential offering, raising approximately S$404.5 million in gross proceeds. This capital raise marks a strategic milestone for the REIT as it continues to expand its portfolio of high-quality data centre assets across Asia Pacific. The offering involved the issuance of 180,562,518 new units at an issue price of S$2.24 per unit, offered on the basis of 80 new units for every 1,000 existing units held as of the record date on 30 September 2025.
Investor response to the offering was overwhelmingly positive. At the close of the subscription period on 13 October 2025, Keppel DC REIT received valid acceptances for 148,146,252 new units, representing 82.1% of the total units offered. In addition, the REIT received applications for 155,479,938 excess units, amounting to 86.1% of the offering. In total, the preferential offering was approximately 168.2% subscribed, underscoring strong investor confidence in the REIT’s growth strategy and operational resilience.
To satisfy the demand for excess units, Keppel DC REIT will allot 32,416,266 excess new units from the pool of provisional allotments that were not validly accepted by entitled or ineligible unitholders. In the allotment process, preference will be given to the rounding of odd lots, while directors and substantial unitholders with influence over the REIT or its manager will rank last in priority for excess unit allocation.
The proceeds from the offering are earmarked for several strategic initiatives. A significant portion will be used to partially fund the acquisition of Tokyo Data Centre 3, a newly built hyperscale facility in Greater Tokyo that is fully leased to a global hyperscaler under a 15-year agreement. This acquisition is expected to enhance Keppel DC REIT’s exposure to long-term, stable cash flows and deepen its presence in Japan’s mature data centre market. Additional funds will be deployed for asset enhancement works at Keppel DC Singapore 8 and to extend the land lease at Keppel DC Singapore 1. The REIT also plans to use part of the proceeds to repay existing debt, thereby improving its balance sheet and reducing financing costs.
Keppel DC Investment Holdings and Keppel DC REIT Management, which collectively held substantial stakes in the REIT prior to the offering, subscribed in full for their respective entitlements. Post-completion, Keppel DC Investment Holdings will hold approximately 17.98% of the total units in issue, while Keppel DC REIT Management will hold around 1.10%.
The new units are expected to commence trading on the Singapore Exchange (SGX) on 22nd October 2025. Upon issuance, they will rank pari passu with existing units, including entitlement to distributable income from 1st July to 31st December 2025 and all future distributions thereafter.
In summary, the strong take-up of Keppel DC REIT’s preferential offering reflects investor endorsement of its strategic direction and disciplined capital management. With fresh capital secured and a clear deployment roadmap, the REIT is well-positioned to scale its digital infrastructure footprint and deliver sustainable value to its unitholders.