Keppel DC REIT to pay $56.6m for data centre master lessee's additional core M&E
Tenant 1-Net will pay for the extra costs from its installation.
Keppel DC REIT will pay up to $56.6m for the installation of additional core Mechanical and Electrical (M&E) in levels 2 and 3 of its Riverside Road data centre for the expansion of its master lessee 1-Net Singapore, the company announced.
Through its subsidiary Datacentre One, the REIT entered into a deed to supplement the existing master lease agreement with 1-Net Singapore. It stated that 1-Net Singapore will be paying instead for the installation costs outside the maximum that the REIT proposed.
1-Net will also pay additional rent between $6.89m and $7.358m based on a portion of the costs paid by Keppel DC REIT for the design, construction, installation and completion of the additional core M&E, on top of an additional core M&E rent for 10 years starting from its handover.
Originally, Datacentre One will be paying for the costs of the construction, installation and completion of the additional core M&E. The company negotiated for the payment to be made only at the completion of the works.