Keppel DC REIT to Acquire Stakes in Two Inzai Data Centres for About JPY 168.4 Billion

Keppel DC REIT and its sponsor, Keppel, announced on September 1, 2026, that they will acquire a 90% interest in Tokyo Data Centre 4 and Tokyo Data Centre 5, two data centres in Inzai, Chiba Prefecture. The two parties will each acquire a 90% quasi-co-ownership interest in the real estate trust beneficiary rights and a 90% interest in the operating company that master-leases the properties. Following the acquisition, Keppel DC REIT will hold an 88.62% effective interest and Keppel 1.38%, with the existing operator retaining the remaining 10%.

The purchase price for the two properties on a 100% interest basis totals JPY 190 billion, and Keppel DC REIT's 88.62% effective interest accounts for approximately JPY 168.4 billion. Completion is expected in the fourth quarter of 2026. The seller is undisclosed, though the registered owner as of September 1, 2026, is Equinix Hyperscale 1 Japan TMK.

Tokyo Data Centre 4 was completed in 2021 and is a five-story building with a gross floor area of approximately 4,766 tsubo (approx. 169,600 sq. ft.). Tokyo Data Centre 5 was completed in 2024 and is a five-story building with a gross floor area of approximately 6,563 tsubo (approx. 233,500 sq. ft.). They are believed to be the facilities Equinix operates as TOKYO TY12x and TOKYO TY13x. The two properties are leased to a total of four tenants and are 100% occupied.

The leases carry rent escalation clauses averaging approximately 2.8% a year, and Keppel estimates that in-place rents are at least 30% below market rents. The weighted average lease expiry is approximately 4.5 years for Tokyo Data Centre 4 and approximately 10.6 years for Tokyo Data Centre 5, combining upside from future rent reversions with long-term income stability.

Keppel DC REIT entered the Japanese data centre market in 2024 with the acquisition of Tokyo Data Centre 1, and expanded its investment in the country in November 2025 by acquiring Tokyo Data Centre 3, also in Inzai, for JPY 82.1 billion (see related article: Keppel DC REIT Acquires Tokyo Data Centre 3 for JPY 82.1 Billion). Following the latest acquisition, Japan's share of Keppel DC REIT's portfolio rental income will rise to approximately 23% from about 9% as of the end of June 2026.

Key Facts

• Buyer: Keppel DC REIT / Keppel
• Seller: Undisclosed (registered owner as of September 1, 2026: Equinix Hyperscale 1 Japan TMK)
• Acquisition Interest: 90% quasi-co-ownership interest in the real estate trust beneficiary rights / 90% interest in the master lessee
• Purchase Price: JPY 190 billion (on a 100% interest basis)
• Keppel DC REIT's Purchase Price: Approximately JPY 168.4 billion (for its 88.62% effective interest)
• Appraised Value: JPY 194 billion (on a 100% interest basis, as of July 31, 2026, JLL Morii Valuation & Advisory K.K.)
• Expected Completion of Acquisition: Fourth quarter of 2026
• Number of Tenants: Four
• Occupancy: 100%
• Location: 2-101-8 Izumino, Inzai, Chiba Prefecture (lot number)
• Property Name: Tokyo Data Centre 4
• • Completion: 2021
  • Number of Floors: 5F
  • Area: Gross Floor Area of approximately 4,766 tsubo (approx. 169,600 sq. ft.)
  • Weighted Average Lease Expiry: Approximately 4.5 years
• Property Name: Tokyo Data Centre 5
• • Completion: 2024
  • Number of Floors: 5F
  • Area: Gross Floor Area of approximately 6,563 tsubo (approx. 233,500 sq. ft.)
  • Weighted Average Lease Expiry: Approximately 10.6 years