CPPIB allocates up to US$350 million in partnership with Alpha Investment Partners and Keppel Data Centres
Friday, Oct 13, 2017
Canada Pension Plan Investment Board (CPPIB) has partnered with Alpha Investment Partners Limited (Alpha) and Keppel Data Centres Holdings Pte. Ltd. (Keppel Data Centres), both of which are part of the Keppel Group, for an initial allocation of up to US$350 million alongside the Alpha Data Centre Fund (ADCF), with the option to invest another US$150 million.

CPPIB's latest commitment and option will bring the ADCF's combined and co-investment interest up to US$1 billion, double the Fund's initial target size of US$500 million. When fully leveraged and invested, the Fund will potentially have assets under management of approximately US$2.3 billion.

The ADCF was launched in July 2016 by Alpha, the private fund management arm of Keppel Capital, amid strong interest from institutional investors for quality alternative asset classes. The collaboration taps on Keppel Data Centre's experience in designing, building and managing data centres for more than a decade. Keppel Data Centres is a 70-30 joint venture between Keppel Telecommunications & Transportation Ltd and Keppel Land Limited.

ADCF aims to develop a quality portfolio of greenfield and brownfield data centre assets in Asia Pacific and Europe, capitalising on strong demand in this asset class in key cities within these two regions. The Fund will leverage the broader Keppel Group's relationships with key industry occupiers and expertise across a range of management, technical engineering and operational disciplines to deliver energy efficient facilities.

Ms Christina Tan, CEO of Keppel Capital and Managing Director of Alpha, said, "The Alpha Data Centre Fund is a prime example of how we can harness synergy and expertise across the Keppel Group to create value and deliver enhanced returns to investors. The strong interest garnered and successful closing of the Fund are testament to Keppel's ability to grow our capital platform with investments from quality global institutional investors."

"The continued strong growth in data requirements globally has driven demand for quality data centre space, particularly in the Asia-Pacific region where digital infrastructure is relatively under-developed," said Mr Jimmy Phua, Managing Director and Head of Real Estate Investments Asia, of CPPIB. "By investing alongside the Alpha Data Centre Fund, CPPIB is able to gain exposure into this critical sector, in partnership with the Keppel Group, a well-respected partner, leveraging established relationships and broad technical expertise with a focus on sustainability."

In July 2017, ADCF acquired a 70% stake in the Keppel DC Singapore 4, a carrier-neutral data centre which features approximately 182,000 sq. ft. of gross floor area. In December 2016, ADCF announced its maiden acquisition of a 60% interest in Keppel DC Frankfurt 1 in Germany, a two-storey facility located in close proximity to the city centre and Frankfurt airport.

For more information, please visit: http://www.kepcorp.com

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