Case Study Of Keppel Data Center Real Estate Investment Trust

In the context of the era of big data,the construction of data centers is the key area of our country’s infrastructure real estate investment trusts(Real Estate Investment Trusts,REITs).There are currently no data center REITs projects in our country,while overseas data center REITs started earlier,and there are currently 6 pure data center REITs listed globally.Overseas experience shows that REITs can provide a stable source of funds for data centers,help data centers expand(M&A or self-build)rapidly,and reduce tax expenses.Studying the operation of overseas data center REITs can provide reference for the promotion of data center REITs in our country,which has important theoretical and practical significance.This paper selects Keppel Data Center REIT in Singapore as the research object.Firstly,the development of REITs in Singapore and our country’s mainland market is studied.The analysis shows that both Singapore and our country’s REITs are contract REITs,and the mature experience of Singapore’s REITs market can be used for reference by our country.Secondly,this paper introduces the establishment background,transaction subject,transaction structure and operation status of Keppel Data Center REIT.Thirdly,this paper discusses the characteristics and advantages of Keppel Data Center REIT from five perspectives,including Keppel Data Center REIT’s motivation,underlying assets,market performance,financial status,and business operation strategies.The analysis of the operation mode of data center REITS found that the establishment of REITs has significantly improved the financing capacity of Keppel data centers,reduced the effective tax rate,optimized the capital structure,and improved the return on assets.From the perspective of basic assets,data center REITs need to deploy core cities,stabilize asset ownership,and choose diversified leasing methods.On the whole,Keppel’s data center REIT’s market performance and financial status are better than other types of REITs,indicating that in the era of big data,data center REITs have good market expectations and development potential.Based on the case analysis of Keppel Data Center REIT,this paper believes that data center REITs are not a simple financing channel,but an industry-finance integrated operation mode with stable rental income and real estate appreciation as the main goals.my country’s data center REITs should adopt a steady expansion strategy,seize the opportunity of China’s data center industry development,rationally allocate assets,and provide differentiated services and management.At the policy level,our country should formulate preferential tax policies and improve the information disclosure system to promote the implementation and promotion of REITs in our country’s data center industry.