{"id":359338,"date":"2023-09-18T20:45:47","date_gmt":"2023-09-18T12:45:47","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=359338"},"modified":"2023-09-18T20:45:47","modified_gmt":"2023-09-18T12:45:47","slug":"kkr-buying-20-stake-in-4b-singtel-data-centre-business","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/data-centres\/kkr-buying-20-stake-in-4b-singtel-data-centre-business\/","title":{"rendered":"KKR Buying 20% Stake in Singtel\u2019s $4B Regional Data Centre Business"},"content":{"rendered":"<div id=\"attachment_303364\" style=\"width: 790px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-303364\" class=\"wp-image-303364 size-full\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/02\/Singtel-to-redevelop-Comcentre-headquarters-into-next-generation-office-development.jpeg\" alt=\"Fierce Bidding Expected for Pine Grove Site in SG\" width=\"780\" height=\"420\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/02\/Singtel-to-redevelop-Comcentre-headquarters-into-next-generation-office-development.jpeg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/02\/Singtel-to-redevelop-Comcentre-headquarters-into-next-generation-office-development-400x215.jpeg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/02\/Singtel-to-redevelop-Comcentre-headquarters-into-next-generation-office-development-640x345.jpeg 640w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2022\/02\/Singtel-to-redevelop-Comcentre-headquarters-into-next-generation-office-development-420x226.jpeg 420w\" sizes=\"(max-width: 780px) 100vw, 780px\" \/><p id=\"caption-attachment-303364\" class=\"wp-caption-text\">Singtel secured some help to accelerate its data centre expansion in Southeast Asia<\/p><\/div>\n<p>A fund managed by KKR has agreed to commit up to S$1.1 billion to acquire a 20 percent stake in Singtel\u2019s regional data centre business, with the US buyout giant\u2019s investment valuing the platform at S$5.5 billion ($4 billion).<\/p>\n<p>KKR will have the option to increase its stake to 25 percent by 2027 at the pre-agreed valuation, it said Sunday <a href=\"https:\/\/media.kkr.com\/news-details\/?news_id=fd6a6a3c-5941-4b7e-a678-03b334963f26\">in a release<\/a>. The regional data centre business is part of Singtel\u2019s Digital InfraCo infrastructure arm, which the telecom unit of state-backed Temasek Holdings <a href=\"https:\/\/www.singtel.com\/about-us\/media-centre\/news-releases\/singtel-consolidates-singapore-consumer-and-enterprise-businesse\">launched in June<\/a>.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/ad.doubleclick.net\/ddm\/trackclk\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd=;dc_tdv=1\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"Copy of APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real Estate\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><script language='JavaScript1.1' src=\"https:\/\/ad.doubleclick.net\/ddm\/trackimpj\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;ord=+ Date.now();dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1?\" attributionsrc ><\/script><\/p>\n<p>\u201cWe are pleased to provide this tailored solution to support the regional data centre platform of Singtel, one of the most longstanding and distinguished corporations in Singapore and a leading digital infrastructure provider in Asia Pacific,\u201d said David Luboff, KKR\u2019s head of Asia Pacific infrastructure.<\/p>\n<p>A source familiar with the deal told Mingtiandi on Monday that Manhattan-based KKR will acquire its interest directly from Singtel and receive board seats in the regional data centre business, with the transaction helping to enlarge the platform in Singapore and Southeast Asia.<\/p>\n<h3>Proceeds to Propel Expansion<\/h3>\n<p>In addition to 62 megawatts of existing data centre capacity in Singapore, Singtel is building a 58MW facility in the city-state\u2019s Tuas area and has also <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/data-centres\/singtel-telkom-medco-to-build-data-centre-in-batam\/\">partnered with Telkom and Medco Power of Indonesia<\/a> and Gulf Energy and AIS of Thailand on projects in Batam and Bangkok.<\/p>\n<div id=\"attachment_359334\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-359334\" class=\"wp-image-359334 size-full\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/09\/David-Luboff.jpg\" alt=\"\" width=\"600\" height=\"482\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/09\/David-Luboff.jpg 600w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/09\/David-Luboff-400x321.jpg 400w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-359334\" class=\"wp-caption-text\">David Luboff, head of Asia Pacific infrastructure at KKR<\/p><\/div>\n<p>The data centre portfolio will deliver a combined capacity of over 155MW once the three new projects are operational in 2025, with room to scale up to more than 200MW, according to Singtel.<\/p>\n<p>The proceeds from the KKR transaction, which is expected to close in the fourth quarter of 2023, will go towards accelerating the expansion of the regional data centre business in Singapore, Indonesia and Thailand while exploring other markets like Malaysia.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mingtiandi.com\/real-estate\/events\/oxford-ivanhoe-kic-savills-on-singapore-india-markets\/\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"14 NOVEMBER 2023 conrad centennial Singapore\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>KKR\u2019s digital infrastructure investments have included last year\u2019s acquisition of <a href=\"https:\/\/www.businesswire.com\/news\/home\/20220324005891\/en\/KKR-and-GIP-Complete-Acquisition-of-CyrusOne\">North American data centre operator CyrusOne<\/a> alongside private equity firm GIP, as well as the formation of <a href=\"https:\/\/www.businesswire.com\/news\/home\/20200527005318\/en\/KKR-Commits-1-Billion-to-Form-Data-Center-Platform-Global-Technical-Realty\">Global Technical Realty<\/a>, a build-to-suit and roll-up acquisition data centre platform in Europe.<\/p>\n<p>\u201cKKR is a highly credible partner in the data centre space and we look forward to our strategic partnership in scaling up the platform to become a meaningful growth engine for Singtel,\u201d said Arthur Lang, the telecom group\u2019s chief financial officer. \u201cThe investment by KKR crystallises the latent value of our data centre assets and we hope this illuminates value for our shareholders in the coming months.\u201d<\/p>\n<h3>Dealmaking Blitz<\/h3>\n<p>The fresh funding for Singtel\u2019s data centre platform adds to a whir of APAC deal activity for KKR this year.<\/p>\n<p>In March, the US firm teamed up with Hong Kong\u2019s Gaw Capital Partners to <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/finance\/kkr-gaw-buying-hyatt-regency-tokyo-from-odakyu\/\">buy the Hyatt Regency Tokyo<\/a> from Odakyu Electric Railway for a reported JPY 57.1 billion ($410 million), giving KKR its first hotel asset in Japan.<\/p>\n<p>In April, KKR announced a deal to buy the <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/finance\/kkr-buying-seouls-namsan-green-from-igis\/\">Namsan Green Building<\/a> in central Seoul on behalf of managed funds including the company\u2019s $1.7 billion <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/finance\/kkr-reaches-final-close-on-asia-real-estate-partners\/\">Asia Real Estate Partners<\/a> value-add and opportunistic vehicle.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mipim-asia.com\/?utm_source=mingtiandi&#038;utm_medium=barter_website&#038;utm_campaign=mipimasia2023\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"AR-607487_Mipim Asia_23_Banner Resize 780&#215;250\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>Last month, KKR revealed that it would sell its controlling interest in <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/finance\/pag-buying-aussie-pub-player-avc-from-kkr\/\">Australian Venue Co<\/a>, an operator of pubs, restaurants and event spaces across Australia and New Zealand, to Hong Kong-based private equity shop PAG for an undisclosed amount.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A fund managed by KKR has agreed to commit up to S$1.1 billion to acquire a 20 percent stake in Singtel\u2019s regional data centre business, with the US buyout giant\u2019s investment valuing the platform at S$5.5 billion ($4 billion).<\/p>\n<p>KKR&#8230;&nbsp;<a href=\"https:\/\/www.mingtiandi.com\/real-estate\/data-centres\/kkr-buying-20-stake-in-4b-singtel-data-centre-business\/\">Read&nbsp;More>><\/a><\/p>\n","protected":false},"author":9671,"featured_media":359334,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[8733],"tags":[6441,1911,8670,5391],"ppma_author":[8847],"authors":[{"term_id":8847,"user_id":9671,"is_guest":0,"slug":"christopher-caillavet","display_name":"Christopher Caillavet","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/500c291c35a85a2ad5827cf7c6d198e1?s=96&d=mm&r=g","user_url":"","last_name":"Caillavet","first_name":"Christopher","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/359338"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/9671"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=359338"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/359338\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/359334"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=359338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=359338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=359338"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=359338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}