Aggressive Keppel DC REIT to splurge $200m in acquisitions in 2016

It's also eyeing plenty of overseas assets.

Keppel DC REIT is pinning its hopes on a massive acquisition spree in order to drive growth, according to a report by DBS.

DBS noted that Keppel DC REIT is expected to spend at least $200m on acquisitions in 2016 alone, mainly on back of the purchase of T27.

In addition, Keppel DC REIT is also on the lookout for third-party acquisitions in Europe and the Asia Pacific to grow its portfolio and drive earnings. The REIT also has the right of first refusal over three other properties owned by Keppel T&T and iSeek Communications.

"Given that earnings profile is fairly stable, growth in DPUs is likely to be driven by acquisitions, which the Manager alludes to be considering. Given current share price, target acquisition returns of c.7-8% are likely to mean that acquisitions are likely to be accretive," said DBS.