Keppel DC REIT has announced the divestment of its Cyberjaya data center, known as the Basis Bay Data Centre, to the company currently leasing the facility. The transaction was valued at RM55.6 million (approximately $12.3 million). This move aligns with Keppel DC REIT’s strategy of actively managing its asset portfolio to maximize returns.
Key Details of the Sale
The sale of the data center, located at 4710 Jalan Cyber Point 5, was finalized through Keppel’s subsidiary, Basis Bay Capital Management Sdn. Bhd., to Basis Bay Services MSC Sdn. Bhd. The buyer, Basis Bay Services, is an unrelated third-party company and the current master lessee and facility manager of the property. The transaction is expected to conclude in Q3 2025.
Upon completion, the existing master lease agreement and facility management agreement for the property will be terminated, marking a new phase for the data center’s operational management.
About the Basis Bay Data Center
The Basis Bay Data Centre is a four-story colocation facility with an adjacent two-story office building in the Cyberjaya area, situated approximately 50 kilometers southwest of Kuala Lumpur. This facility, built in 2009, was designed with provisions for future expansion, highlighting its long-term operational potential.
Why Keppel Divested the Data Center
Keppel DC REIT stated that the divestment is in line with its “proactive asset management strategy,” which aims to optimize the performance of its portfolio. The Basis Bay facility, previously part of Keppel’s initial portfolio when the REIT launched in 2014, was the only Malaysian property owned by Keppel DC REIT. This sale further streamlines the REIT’s geographic focus and operational management.
History of the Facility and Its Operations
The Basis Bay Data Centre has a history rooted in partnerships. In 2012, Keppel’s Securus Fund acquired an 80 percent stake in the facility, while the remaining 20 percent was owned by the Basis Bay Group. Basis Bay, a company founded in 1996, specializes in data center and cloud services, along with facility management and consulting. In addition to the Cyberjaya facility, Basis Bay operates data centers in Glenmarie, Kuala Lumpur, and is currently developing a second facility in Cyberjaya with STT GDC.
Strategic Implications for Keppel DC REIT and Basis Bay
This divestment underscores Keppel DC REIT’s strategy to focus on high-growth assets while simplifying its portfolio. For Basis Bay, acquiring full ownership of the Cyberjaya site will provide greater operational flexibility, particularly as the company continues to expand its data center footprint in Malaysia.
Future of the Cyberjaya Data Center and Market Impact
The data center market in Malaysia remains robust, with Basis Bay planning further developments in the region. The company is working on a second Cyberjaya facility in partnership with STT GDC and has additional projects underway in Johor and the northern region of Malaysia. This growing footprint positions Basis Bay as a key player in the Southeast Asian data center market.
FAQ Section
1. Why did Keppel DC REIT sell the Cyberjaya data center?
Keppel DC REIT divested the Basis Bay Data Centre as part of its strategy to optimize its portfolio and focus on high-growth assets.
2. Who bought the Basis Bay Data Centre?
The Basis Bay Data Centre was purchased by Basis Bay Services MSC Sdn. Bhd., the current master lessee and facility manager of the property.
3. When will the sale of the Cyberjaya data center be completed?
The sale is expected to be completed in Q3 2025.
4. What is the significance of the Cyberjaya facility to Basis Bay?
Acquiring full ownership of the Cyberjaya facility gives Basis Bay greater control over its operations and expansion plans in Malaysia.
5. How does this divestment impact the Malaysian data center market?
The divestment and Basis Bay’s ongoing expansion contribute to the growth of the Malaysian data center market, positioning the company for future success in the region.
