Keppel Dc Reit · SGX:AJBU
Keppel Dc Reit — Merger or Acquisition (October 2015)
14 slides from Keppel Dc Reit's merger presentation, Oct 28, 2015
Slide 1: First German Acquisition: mainCubes Data Centre
First German Acquisition: mainCubes Data Centre 28 October 2015
Slide 2: Important Notice
Important Notice DBS Bank Ltd. and Standard Chartered Securities (Singapore) Pte. Limited are the Joint Financial Advisers and Issue Managers to the initial public offering of Keppel DC REIT (the “Offering”). DBS Bank Ltd., Standard Chartered Securities (Singapore) Pte. Limited and Credit Suisse (Si
Slide 3: Content
Content Overview Transaction Highlights Key Merits of Investment 2
Slide 4: Overview
Overview Expansion of footprint in Europe with its first investment in Germany Forward purchase of mainCubes Data Centre (mainCubes DC), a 4-storey fully-fitted data centre to be developed to Tier III specifications in Offenbach am Main. Income generating upon contract signing and throughout con
Slide 5: Transaction Highlights
Transaction Highlights Aligned to the REIT’s investment strategy of acquiring income-producing assets that would enhance total return to Unitholders and increase potential for future growth • Development risks to be borne by the Vendor Forward purchase with no development risks • Title to be transfe
Slide 6: Key Merits of Investment
Key Merits of Investment 1. Forward purchase acquisition which is immediately DPU-accretive 2. Strategic market with high barriers to entry 3. Well-positioned in key data centre market 4. Long lease with established tenant 5. Geographical diversification 6. Complementary to current portfolio 7. Heal
Slide 7: Forward Purchase Acquisition which is Immediately DPU-Accretive
Forward Purchase Acquisition which is Immediately DPU-Accretive Income-generating acquisition that would be immediately accretive for Keppel DC REIT with regular coupons receivable from the Vendor during development period Development risks to be borne by the Vendor Development & Payment Timelin
Slide 8: Strategic Market with High Barriers to Entry
Strategic Market with High Barriers to Entry Foray into key European data centre market that is tightly-held Data centre demand continues to be driven by: High internet traffic: Deutscher Commercial Internet Exchange (DE-CIX) is the world’s leading carrier and data centre-neutral internet exch
Slide 9: Well-Positioned in Key Data Centre Market
Well-Positioned in Key Data Centre Market Strategic location: mainCubes will be located within data centre hub that spans across Frankfurt and Offenbach Proximity to internet exchange point (IXP): mainCubes will be located mainCubes approximately 800m (linear distance) DE-CIX DC from the world’s
Slide 10: Long Lease with Established Tenant
Long Lease with Established Tenant 15-year triple-net lease agreement enhances the REIT’s income stream stability The data centre will be operated by mainCubes one GmbH, a joint venture company between Art-Invest Real Estate GmbH & Co KG and wusys GmbH Part of the Art-Invest Real Estate More
Slide 11: Geographical Diversification
Geographical Diversification The German acquisition will further diversify the geographical profile of the REIT’s portfolio, as well as balance the proportion of assets in Asia Pacific and Europe Diversifies Geographical Profile of Portfolio Before After Ireland, Germany, 9.7% 10.8% Netherlands, I
Slide 12: Complementary to Current Portfolio
Complementary to Current Portfolio Extends Weighted Lease to Expiry (WALE) Increases Portion of Freehold Assets (by AUM) Before After1 Before After1 WALE WALE 8.9 years 10.0 years Leasehold 59.5% Freehold Leasehold 53.1% Freehold by lettable area by lettable area 40.5% 46.9% Balances Portfolio Lease
Slide 13: Healthy Debt Headroom Remains
Healthy Debt Headroom Remains Purchase consideration: to be funded by a combination of debt and equity, providing natural hedge while maintaining healthy debt headroom Two payment tranches: First payment of 10% deposit: to be paid upon contract signing. Will be funded by debt, raising aggregat
Slide 14: Thank you.
Thank you. KG y-y-1) DC REIT 13
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