When considering investing in a condo, it is crucial to also evaluate the potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, condos can have vastly different rental yields depending on factors such as their location, condition, and demand in the market. For instance, areas near business districts or educational institutions often have a higher rental demand and thus offer better rental yields. To determine the rental potential of a particular condo, it is essential to conduct thorough market research and seek guidance from real estate agents. Additionally, staying updated on new condo launches can provide useful insights into the current rental market.
project
On November 19, Keppel announced its plan to sell a data centre joint venture (JV) to Keppel DC REIT (KDC REIT) for a total of $1.38 billion. The JV, which is owned 60% by Keppel’s connectivity division and 40% by Cuscaden Peak Investments Private Limited, owns the Keppel Data Centre Campus in Singapore. The campus includes two completed data centres, Keppel DC Singapore 7 (KDC SGP 7) and Keppel DC Singapore 8 (KDC SGP 8), which are fully contracted to global hyperscalers from the cloud services, internet enterprise, and telecommunications sectors. KDC SGP 7 and KDC SGP 8 were funded by the JV, Keppel’s private fund Alpha Data Centre Fund, and co-investors. Upon completion of the sale, KDC REIT will fully own both data centres, and Keppel will continue to operate and manage them. KDC REIT will initially acquire a 49% interest in the JV and will have the option to buy the remaining 51% from Keppel in 2025. The proposed deal is expected to be accretive to KDC REIT’s distribution per unit (DPU) by 8.1% and will increase its assets under management (AUM) by 36% to $5.2 billion. Keppel will receive around $280 million from the divestment, which includes the estimated consideration for its 51% stake in the JV and additional payments depending on the campus being granted a 10-year land tenure lease extension. The JV also owns a vacant land plot earmarked for a third data centre, which Keppel plans to develop with its two data centre private funds. Manjot Singh Mann, CEO of Keppel’s connectivity division, says that the deal highlights the company’s ability to structure deals that result in strong value creation for its private funds and REIT. He adds that Keppel’s integrated ecosystem provides access to crucial resources and technology know-how, which are essential for success in the data centre business. Loh Hwee Long, CEO of KDC REIT’s manager, says the REIT is thrilled to embark on this “landmark deal” during its 10th anniversary. He adds that the proposed acquisition will immediately increase DPU and enhance the portfolio’s income resilience as well as provide potential upside from rental increases and capacity expansion. The deal is expected to be completed in stages by the end of 2025.