Keppel DC REIT's manager announces equity fund raising

The Edge Singapore
19 Nov 2024

KDC REIT's manager plans around $1 billion in EFR comprising $600 million in placement, $300 million in preferential offering and $85 million for sponsor subscription.

To fund Keppel DC REIT's (KDC) proposed acquisition of interests in two data centre buildings, SGP KDC 7 and SGP KDC 8, located at 82 Genting Lane, KDC's manager has announced the launch of an equity fund raising (EFR) of almost $1 billion.  

The EFR comprisies a private placement of no less than approximately $600.0 million; a preferential offer comprising $300 million, and the sponsor's subscription of $85 million.

The private placement price is likely to be at $2.074 to $2.128 per unit, or 1.5% to 4% discount to adjusted volume-weighted average price (VWAP); the preferential offering's price range is expected to be $2.03 to $2.08 per unit, or a 3.7% to 6.1% discount to VWAP. 

The sponsor's subscription will be at the issue price of the preferential offering. 

On Nov 19, KDC announced the proposed acquisition of two AI-ready hyperscale data centres in Singapore, SGP KDC 7 and SGP KDC 8, for $1.38 billion.

The proceeds from the EFR will be used to partially fund the proposed stake in the private company, Memphis 1, that holds stakes in SGP KDC 7 and SGP KDC 8, and to fund new notes, which will be used towards redeeming the existing notes of Memphis 1. 

Although the books have not opened, interest is reported to be at a high level. 

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