Keppel is expanding into Japan with plans to build and buy facilities in the country.
Keppel Ltd. has signed a Memorandum of Understanding (MoU) with Mitsui Fudosan Co. Ltd. (Mitsui Fudosan) to ‘jointly explore data center development and investment opportunities’ in Japan and Southeast Asia.
In addition, Keppel Data Centre Fund II (KDCF II) has in place a framework agreement with Mitsui Fudosan for the proposed forward purchase of a data center currently under development in Western Tokyo.
Under the framework agreement, KDCF II will work with Mitsui Fudosan on the acquisition of the 300,000 sq ft (27,870 sqm) freehold purpose-built data center. The facility is expected to be ready for service in 2027. Terms of the deal were not shared.
Mitsui Fudosan will develop the core and shell of the data center, while KDCF II will undertake the fit-out works. When completed, this will be Keppel’s first data center project in Japan.
Christina Tan, CEO, fund management and chief investment officer of Keppel said: “The Western Tokyo data center presents a rare opportunity for Keppel to enter the Japan data center market. Under the MoU, Keppel expects to work even more closely with Mitsui Fudosan, an established property developer in Japan, to further penetrate the Japan market, in order to deliver attractive risk adjusted returns to our investors.”
Mitsui Fudosan is a major real estate company in Japan. The company was founded in 1941 after Mitsui’s real estate division was spun out.
Takayuki Miki, managing director, senior executive managing officer, chief operating officer, logistics properties business division at Mitsui Fudosan, said, “We are pleased to sign the MoU with Keppel and we look forward to further deepening our relationship with Keppel and leveraging each other’s expertise to create value together.”
