Keppel DC REIT deal to push secondary fundraising past $4b

The $625m placement will help finance two Greater Tokyo data centres.

Secondary equity fundraising by SGX-listed companies is expected to exceed $4b in 2026 following Keppel DC REIT’s $625m private placement.

Companies raised $3.57b through secondary fundraising in the first eight months of the year, according to Singapore Exchange data.

Keppel DC REIT’s new units are scheduled to begin trading on 10 September. Their inclusion would lift the annual total above $4b, marking the highest secondary fundraising amount since 2021.

The REIT initially sought to raise at least $600m but increased the placement to approximately $625m following strong investor demand.

The transaction was around 3.5 times covered before the upsizing and remained approximately 3.4 times covered afterward.

Keppel DC REIT will issue 297.62 million new units at $2.10 each. The units represent approximately 12.2% of its pre-placement unit base.

Around $615.8m, or 98.5% of the gross proceeds, will partially finance the acquisition of an 88.62% effective interest in two freehold hyperscale colocation data centres in Inzai City, Greater Tokyo.

The remaining $9.2m will cover fees and other transaction-related expenses.

The acquisition is valued at approximately ¥168.4b, or $1.37b. Both properties are fully occupied by four investment-grade internet enterprise and IT-services clients.

On a pro forma basis, Keppel DC REIT’s FY2025 distribution per unit would have increased 2.6% to 10.649 cents if the acquisition had been completed at the beginning of 2025.

Following the transaction, Japan’s contribution to portfolio rental income is expected to rise from approximately 9% to 23%. Singapore will remain the REIT’s largest market, accounting for about 60%.

Assets under management are projected to increase from $6.3b to approximately $7.6b across 27 data centres in 10 countries.

REITs have led Singapore’s secondary fundraising by value in 2026. The three largest completed transactions raised approximately $2.24b, accounting for 63% of the $3.57b raised through August.

Secondary fundraising has represented approximately 80% of the nearly $90b raised through Singapore’s equity capital markets since the end of 2016, consistently exceeding initial public offering proceeds over the period.

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