Singaporean asset manager Keppel has sold stakes in two data centers in Singapore to its data center real estate investment trust.

Keppel Ltd.’s Connectivity Division has agreed to sell the remaining ten percent interest in Keppel DC Singapore 3 (KDC SGP 3) and one percent interest in Keppel DC Singapore 4 (KDC SGP 4) to Keppel DC REIT for a total cash consideration of $50.5 million.

Located in Tampines Industrial Park within the city-state, KDC SGP 3 and KDC SGP 4 are carrier-neutral and purpose-built facilities providing dedicated colocation suites and have a combined lettable area of 139,470 sq ft (12,957 sqm).

Upon completion of the transactions, expected by 1Q 2026, Keppel DC REIT will hold a 100 percent interest in the two facilities.

Lee Kok Chew, Keppel’s head of the accelerating monetisation task force, said: “Monetizing our remaining interests in KDC SGP 3 and 4 reflects Keppel’s disciplined approach to capital recycling. This allows us to unlock value and redeploy capital to other opportunities across our integrated ecosystem, while enabling Keppel DC REIT to strengthen its long-term position in these quality data center assets.”

The acquisitions will be funded by part of the proceeds from Keppel DC REIT’s recent preferential offering and issuance.

Loh Hwee Long, CEO of the manager of Keppel DC REIT, added: “Acquiring full ownership of KDC SGP 3 and 4 strengthens Keppel DC REIT’s position in Singapore’s data center market. Not only is this transaction in line with our value creation strategy, but it also reflects our commitment to deliver long-term value for unitholders as data center demand continues to grow.”

Completed in 2015, the five-story KDC SGP 3 totals 54,925 sq ft (5,102 sqm) and is fully occupied by two tenants. Completed in 2018, the five-story KDC SGP 4 totals 84,545 sq ft (7,854 sqm) and is 94.5 percent occupied by four tenants. A Keppel DC REIT presentation on the deal says the purchase enhances the firm’s “hyperscaler exposure.”