Unitholders of Keppel DC REIT, which claims to be the first pure-play data centre real estate investment trust (REIT) listed in Asia and on the Singapore Exchange, have reportedly voted in favour of a SGD89.7 million (USD65.3 million) investment in bonds and preference shares to be issued by M1 Network (NetCo), the unit which owns the mobile, fixed and fibre assets of Singaporean telco M1.
The Business Times reports that during Keppel DC REIT’s extraordinary general meeting (EGM) held on 2 December 2021, ‘some 95.2% of unitholder votes signalled their approval of the first resolution for the NetCo bonds and preference shares investment as an interested-party transaction’. Additionally, ‘96.4% of unitholder votes were in favour of the proposed fee supplement for a one-off acquisition fee payable to the real estate investment trust (REIT) manager in connection with the investment, which is non-real estate related.’ M1 is jointly owned by Keppel Corp and Singapore Press Holdings.
Keppel DC REIT and M1 will reportedly have equal representation on the board of NetCo, which will acquire the telco’s mobile, fixed and fibre assets for about SGD580 million through an asset-transfer agreement. These exclude M1’s 5G Standalone (SA) assets, which are jointly owned between M1 and another party – TeleGeography notes that M1 is a partner in a joint venture (JVCo) named Antina, set up with fellow operator StarHub – as well as the co-owned and ‘right-of-use’ assets that cannot be transferred. Further, under a 15-year network services agreement, M1 and its MVNOs will use NetCo’s network capacity, while the telco handles the day-to-day operations, maintenance of the network assets and the CAPEX works.