The company divests from a 50,250 square meter asset to focus on the hyperscale market.
Keppel DC REIT, the data center investment trust of Keppel Corporation, has announced the sale of its data centerA data center or data processing center (DPC) in Kelsterbach, Frankfurt, for a value of 50 million euros. The transaction, which will be conducted in cash, is expected to be completed in the first half of 2025.
The asset, built in 1989, boasts a total area of 50,250 square meters, distributed across a five-story data center and a six-story office building. The property was acquired by Keppel DC REIT in 2019 for 81.8 million euros and was fully leased under a triple net lease until the end of 2025.
According to Loh Hwee Long, CEO of Keppel DC REIT Management Pte Ltd, the divestment is part of the fund’s strategy to focus on hyperscale data centers, where demand trends align better with its business model.
“The sale of the Kelsterbach Data Centre allows us to redirect our resources toward more attractive growth opportunities in major digital hubs in Asia-Pacific, Europe, and the United States,” the executive explained.
An asset with a history of ownership changes
Keppel has not revealed the identity of the buyer or the exact location of the data center, but available images suggest that the asset may correspond to the Kyndryl campus in Kelsterbach, located at Am Weiher 24.
Kyndryl, the IT services company spun off from IBM in 2021, took control of this site after acquiring the IT division of Lufthansa in 2014.
Despite this sale, Keppel continues to maintain a presence in Frankfurt. In 2015, the fund acquired another data center in Offenbach am Main, developed by Maincubes, which remains part of its asset portfolio.
With this transaction, Keppel reaffirms its commitment to investing in larger-scale data centers, a sector that continues to thrive amid the growing demand for digital infrastructure and cloud computing.