Keppel Infrastructure Fund Management Pte. Ltd. (KIFM), in its capacity as Trustee-Manager of Keppel Infrastructure Trust (KIT), is pleased to announce that KIT's wholly-owned subsidiary, CityDC Pte. Ltd. (CityDC), is divesting its 51% stake in DataCentre One Pte. Ltd. (DataCentre One) to Keppel DC REIT for a consideration of $102.9m.
The remaining 49% is held by WDC Development Pte. Ltd. (WDC)1 and will also be acquired by Keppel DC REIT. The agreed consideration is based on the adjusted net asset value of DataCentre One, which is apportioned between CityDC and WDC in their respective shareholding proportion.
DataCentre One is a joint venture company that was formed in June 2014 between CityDC and WDC to develop, build and lease 1-Net North Data Centre (1-Net North DC). The five-storey purpose-built facility is located just outside the Woodlands Regional Centre. The agreed value for 1-Net North DC is $200.2 million.
In June 2019, CityDC launched a tender for the sale of 1-Net North DC. The bids received were evaluated holistically based on multiple criteria, and Keppel DC REIT was selected as the preferred bidder.
Mr Matthew Pollard, Chief Executive Officer of the Trustee-Manager, said, "The divestment allows KIT to realise the remaining lease value in DataCentre One upfront, thus benefitting Unitholders. Proceeds from this divestment are expected to be redeployed into quality acquisitions that will strengthen KIT's portfolio, as well as for refinancing purposes and working capital needs."
KIT intends to use part of the consideration for the repayment of DataCentre One's loans, among others. Accordingly, the estimated net proceeds to be received by KIT is $51.3 million2.
The divestment is subject to and conditional upon, among others, the approval of Unitholders of KIT at an extraordinary general meeting. When completed, it is expected to increase KIT's earnings per Unit for the financial year ending 31 December 2019. It is not expected to have a material impact on the net tangible assets, funds from operations and distribution per Unit of KIT for the financial year ending 31 December 2019.
Post-divestment, KIT will have in its portfolio the Ixom Group, City Gas, the Basslink Interconnector, the Keppel Merlimau Cogen Plant, the Senoko Waste-to-Energy Plant, the Keppel Seghers Tuas Waste-to-Energy Plant, the Keppel Seghers Ulu Pandan NEWater Plant and the SingSpring Desalination Plant.
1 A wholly-owned subsidiary of Shimizu Corporation.
2 Subject to adjustments at completion of the transaction.
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For more information, please contact:
Mr Ang Lai Lee
Assistant General Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: (65) 6413 6427
Mr Bryan Sim
Tel: (65) 6803 1851
About Keppel Infrastructure Trust
Keppel Infrastructure Trust (KIT) is a diversified business trust listed on the Singapore Exchange with over $5 billion in assets under management. Its goal is to deliver sustainable returns to Unitholders, through a combination of recurring distributions and capital growth over the long term.
KIT's portfolio of strategic infrastructure assets provides essential products and services to a wide multitude of customers including government agencies, multinational corporations, commercial and industrial enterprises as well as retail consumers.
KIT's assets are segmented into the three core sectors of Energy, Distribution & Network and Waste & Water. Assets in the Energy and Waste & Water sectors are integral to the provision of power, and waste treatment and water purification services. The contract terms for these assets are backed by recurring fixed capacity/availability payments, providing KIT with stable and defensive cash flows. Assets in the Distribution & Network segment provide essential products and services in the areas of gas production, telecoms and electricity transmission, data centres, as well as manufacturing and distribution of critical and essential chemicals. These assets are well-positioned to deliver resilient cash flows with potential for growth that is supported by favourable market dynamics and demand over the long term.
KIT is sponsored by Keppel Infrastructure Holdings Pte. Ltd., a leading developer, owner and operator of infrastructure businesses. The Trustee-Manager for KIT is Keppel Infrastructure Fund Management, a wholly-owned subsidiary of Keppel Capital Holdings Pte. Ltd., a premier asset manager in Asia with a diversified portfolio in real estate, infrastructure and data centre properties in key global markets.
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