Keppel DC Reit

[greengiraffe]

Keppel DC Reit Said to Seek Up to $512 million in Singapore IPO: report
Published on Nov 25, 2014 12:47 PM



Keppel DC Reit, a trust that will be backed by data centre properties, is seeking to raise as much as $512 million from its Singapore initial public offering, Bloomberg News said on Tuesday, quoting people with knowledge of the matter.

At this figure, Keppel DC Reit would be the second-biggest IPO in Singapore this year, after Accordia Golf Trust's $782 million offering in July, according to data compiled by Bloomberg.

The Keppel trust plans to offer units at 90 to 93 cents each and a dividend yield of as much as 7.1 per cent for the 2015 fiscal year, Bloomberg reported.

Keppel T&T shareholders are meeting on Tuesday to vote on the proposed REIT listing as well as the planned sale of the company's stakes in data centres in Singapore, Australia and Europe to the trust.

[greengiraffe]

Another Taxi in the making???

http://www.valuebuddies.com/thread-158-p...#pid102137

[valuebuddies]

I quote the whole article here, Moderator pls amend if improper: [ I verified, the article isn't in public domain yet, so a full quote isn't appropriate. Thanks, From moderator ]

SINGAPORE Exchange's (SGX) massive system failure last month that paralysed trading on the local bourse for over three hours stemmed from a glitch at the exchange's data centre housed in Keppel Digihub.

The Business Times understands that a power outage at the SGX data centre in Serangoon North, touted back in 2011 at its launch as a state-of-the art and powerful trading system that will boost trading speed and connectivity to global markets, had triggered one of the biggest market disruptions of South-east Asia's largest bourse in recent years.
... [Edited by Moderator]

So putting the blame solely on Keppel DC is inappropriate, and now we have Hitec in the picture, then later on the utilities company and so on...

Never ending story, but it is definitely not another Taxi marketing as I don't think such gimmicks are being practised by reputable companies like Keppel.

[Some-one]

For those who are interested.

IPO registered at $0.93 a share...

Date and Time Event
5 December 2014, 9:00 PM Opening date and time
for the Public Offer
10 December 2014, 12:00 PM Closing date and time
for the Public Offer
12 December 2014, 2:00 PM Commencement of trading
on a “ready” basis

[lonewolf]

A bit tricky to find the prospectus on OPERA so here the link for those who are interested to take a look.

Prospectus: LINK HERE

[greengiraffe]

http://www.valuebuddies.com/thread-1727-...#pid102723

Funds are switching out of kep T&T to buy the reit.

For it's DC reit, 45% of it's income comes from 2 data centers located in Singapore. These 2 data centers sit on land leasehold tenures of about 7 and 11 years remaining with option for 30 years extension if terms are not breached.

When the time comes (and it's not too far off), additional capital raising will be needed to extend the lease tenure and should significantly affect the yield. Institutional investors seem not bothered at all with this, subscribing the placement 24.4 times. Huh

When u are fun mgr, not Buffet, you will be constantly under pressure for performance and hence DC REIT is a new concept that will help in such performance - 7 to 11 years is such a long time as many that would have made enough would have retired to make their own $

[safetyfirst]

http://www.valuebuddies.com/thread-1727-...#pid102723

Funds are switching out of kep T&T to buy the reit.

For it's DC reit, 45% of it's income comes from 2 data centers located in Singapore. These 2 data centers sit on land leasehold tenures of about 7 and 11 years remaining with option for 30 years extension if terms are not breached.

When the time comes (and it's not too far off), additional capital raising will be needed to extend the lease tenure and should significantly affect the yield. Institutional investors seem not bothered at all with this, subscribing the placement 24.4 times. Huh

When u are fun mgr, not Buffet, you will be constantly under pressure for performance and hence DC REIT is a new concept that will help in such performance - 7 to 11 years is such a long time as many that would have made enough would have retired to make their own $

The short lease also caught my attention. Also these 2 data centres (S25 and T25) account for quite a significant proportion of the reit's distribution.

Any property expert here can give a rough estimate of the money to be paid for extending the lease tenure for another 30 years?

[sgpunter]

http://www.businessinsider.sg/hp-the-mac...IfS_TGUc00

How will this impact Keppel DC Reit?

[Behappyalways]

(with falling energy costs, Keppel DC Reit will benefit from it as one of the main costs for data centers is energy price)


Keppel DC Reit has high hopes for growth prospects
http://video.cnbc.com/gallery/?video=3000338617

[Temperament]

B4 IPO, many think it's a long to long-term investment. Look like those who want to stag have a "Field Day" today. No?
For those going for long-term, do we need to worry about http://www.businessinsider.sg/hp-the-mac...IfS_TGUc00 as posted by sgpunter? If so when to start to worry? Better start now?
(Vested in HP for > 25 years)