COMMERCIAL PROPERTY | Staff Reporter, Singapore

SPH forms JV with Keppel unit to develop data centre facilities

They are buying a property at Genting Lane for $50m.

Singapore Press Holdings (SPH) has agreed with Keppel Data Centres (KDCH) to incorporate a joint venture company (JV) to acquire a property located at 82 Genting Lane and develop and operate data centre facilities on it, the former announced in an SGX filing.

In a shareholders’ agreement, the JV was formed between SPH’ wholly-owned subsidiary Times Properties Pvt Ltd (TPPL) and its subsidiary TPM, and KDCH and its two wholly-owned units, Keppel Griffin and Geras DC. Named Memphis 1, it has an issued and paid up share capital of $100 owned 60% by KDCH and 40% by SPH.

With this, the JVCo has entered into a put and call option agreement to buy the property from Singapore News and Publications Limited, a wholly-owned subsidiary of SPH, for $50m in cash. This is expected to be completed by 17 July.

KDCH and SPH will subscribe for around 3.49 million shares in the JV. The subscription price for the 1.4 million shares to be issued to the SPH investor is $1.4m.

The two investors will also subscribe for $57.5m in aggregate principal amount of bonds to be issued by the JVCo, with $233m to be issued to the nominee of TPPL and TPM, Times Genting, a wholly owned subsidiary of the SPH investor.

The sale proceeds arising from the property sale will be utilised by Singapore News and Publications to fund part of the aggregate JV investment amount.  

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