Keppel DC REIT has announced today it has acquired its third data centre in the Netherlands. Based in De Hurk, the largest business park in Eindhoven, the freehold property includes two other data centre buildings and was purchased for US444.1mn.
The purchase came from a fund affiliated with MCAP Global Finance (UK) LLP, the European subsidiary of New York-headquartered Marathon Asset Management LP. The purchase price was arrived at on a willing-buyer and willing-seller basis, and legal completion has taken place.
Keppel DC’s latest facility will be called Eindhoven Campus, and aims to further strengthen its foothold in this key data centre market in Europe, the company said. The property is well connected to the Netherland’s motorway network. Comprising two shell and core data centre buildings as well as a warehouse and an ancillary office building within the site, Eindhoven Campus has a combined net lettable area of approximately 83,841 sq ft and is fully leased with a WALE of 6.8 years1 by leasable area and 8.5 years1 by rental income. The data centre space is leased to a global leading IT services provider.
Anthea Lee, CEO of Keppel DC REIT Management Pte. Ltd., the Manager of Keppel DC REIT, said, "Being one of the top four data centre markets in Europe and the eighth largest data centre market globally, the Netherlands is a strategic market for Keppel DC REIT. We are pleased to be able to add to our portfolio a quality and green data centre located in the key technology hub of Eindhoven.
“With this acquisition, we also diversify our portfolio base with the addition of a well-established data centre client and we look forward to establishing strong ties with this client. With this asset, we continue to leverage the strong fundamentals of the Netherlands to provide our investors with stable and sustainable returns,” she added.
The Netherlands’ data centre market
The Netherlands’ data centre market is expected to register a compound annual growth rate of 5.3% over the forecast period of 2021 to 2026. With various transatlantic submarine cables linked directly to the Netherlands, the country is an ideal landing point for data connectivity between the US and Europe. The Netherlands also hosts two of the top 10 largest internet exchanges in the world, namely the Amsterdam Internet Exchange (AMS-IX) and the Neutral Internet Exchange (NL-IX).
Keppel DC claims that the latter “has connectivity presence in Eindhoven”, a major city in the Netherlands with an eco-system of more than 235 high-technology companies. The region continues to gain momentum as a key location for companies developing solutions for the digital economy.
Based on the valuation dated 7 July 2021 by CBRE Valuation & Advisory Services B.V, an independent valuation firm appointed by the trustee of Keppel DC REIT, the market value of the property was US$42mn.