Keppel DC REIT has priced an upsized S$625 million private placement after receiving strong demand from institutional and accredited investors.
The offering was originally targeted at approximately S$600 million, but demand substantially exceeded the amount available. At the initial size, the placement was approximately 3.5 times covered, demonstrating significant investor interest in the offering.
Following the decision to increase the transaction to S$625 million, the placement remained approximately 3.4 times covered, indicating that demand continued to materially exceed the number of units being issued even after the upsizing.
A majority of the new units were allocated to long-only institutional investors and real estate specialists, providing Keppel DC REIT with participation from investors focused on longer-term ownership and the real estate sector.
Under the placement, Keppel DC REIT will issue approximately 297.62 million new units at S$2.10 per unit, generating gross proceeds of approximately S$625 million.
The S$2.10 issue price represents a discount of approximately 4.4% to the S$2.1974 volume-weighted average trading price of Keppel DC REIT units on August 31, 2026.
The capital raise is primarily being conducted to support Keppel DC REIT’s planned acquisition.
Approximately S$615.8 million, representing 98.5% of the gross proceeds, is expected to be used to partially finance the acquisition.
The remaining approximately S$9.2 million will be used to pay fees and other expenses associated with the private placement and transaction.
The size of the allocation toward the acquisition means substantially all of the capital raised will be deployed directly toward expanding Keppel DC REIT’s portfolio rather than being retained for general corporate purposes.
The private placement provides Keppel DC REIT with a significant amount of fresh equity capital while reducing the amount of additional financing required to complete the planned acquisition.
The strong level of subscription also enabled the REIT to increase the offering by S$25 million from its original target while maintaining substantial oversubscription.
Keppel DC REIT is issuing the new units through an institutional placement rather than a broader public offering, allowing the REIT to raise a large amount of capital from institutional and accredited investors within a relatively concentrated transaction.
The placement is being managed by DBS Bank, Oversea-Chinese Banking Corporation, Jefferies Singapore and United Overseas Bank, which are serving as joint bookrunners and underwriters.
Following completion of the placement, the newly issued units are expected to begin trading on the Singapore Exchange on September 10, 2026, subject to receipt of the required approvals.
The S$625 million capital raise provides Keppel DC REIT with substantial additional funding as it moves toward completing its planned acquisition while expanding the REIT’s outstanding unit base through the issuance of nearly 298 million new units.
