News

Telecom & Internet

Staff Reporter

, Singapore

Published:

13 years ago

Keppel Datahub 2 (KDH2) yields and occupancy rates are similar to existing data centres

Keppel T&T to milk S$7m annually from its 3rd data centre

But bosses must wait a bit.

According to CIMB, assuming that Keppel Datahub 2 (KDH2) yields and occupancy rates are similar to existing data centres, it could see KDH2 adding around S$20m to its top-line and S$7m to net profit annually.

However, CIMB have assumed an incremental contribution to earnings from FY14-16 as we believe that it will take time for demand to mature. That said, the increase in earnings will be partially offset by higher interest expense.

CIMB also noted that it is also increasingly likely that KPTT will monetise its data centre assets by injecting them into a REIT.

Here's more:

KPTT announced plans to develop its third data centre in Singapore, following the acquisition of a light industrial building from Goodvine Pte Ltd in Tampines Street 92 for S$26.6m (according to REALIS).

This is located next to its current data centre. The new Keppel Datahub 2 (KDH2) will deliver a data centre space of more than 6,000 sq m and a power density of more than 2kW per sq m. KDH2 is expected to commence operations in early 2014.

KPTT has been delivering on its promise to grow its core logistics and data centre earnings, with the latest development underpinning this commitment. This development should cost around S$80m-90m, according to our estimates, and will be funded in conjunction with Keppel Land.

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