Keppel’s data center real estate investment trust (REIT) has sold a data center in Frankfurt, Germany.

It was announced this week that Keppel DC REIT Management Pte. Ltd., the manager of Keppel DC REIT, has entered into a sale and purchase agreement to divest the 100 percent freehold interest in the Kelsterbach Data Centre to an unrelated (and unnamed) third party.

The all-cash deal was valued at €50 million ($52.4m) and expected to close in the first half of 2025.

Constructed in 1989, the 540,870 sq ft (50,250 sqm) property comprises a five-story shell and core data center and six-story office block.

“The divestment of Kelsterbach Data Centre aligns with our strategy to concentrate on the hyperscale data center market where demand trends match Keppel DC REIT’s core competencies,” said Loh Hwee Long, CEO of Keppel DC REIT Management Pte Ltd.

"Post transaction, Keppel DC REIT remains well-positioned to pursue accretive data center investment growth opportunities in key digital hubs in Asia Pacific, Europe, and the US.”

Keppel DC REIT acquired the site in late 2019 from Maena KG for €81.8 million. At the time, the property was fully leased on a triple-net basis until the end of 2025.

Keppel didn’t share details of the address or the tenant, but images of the facility matches Kyndryl’s Kelsterbach campus along Am Weiher 24.

IT services firm Kyndryl took over the site after being spun out from IBM in 2021; IBM took over Lufthansa’s IT business in 2014, taking over the site in Kelsterbach as part of the deal.

Keppel still has one other data center in Frankfurt. Keppel DC REIT acquired a facility, in Offenbach am Main, around 2015 that Maincubes was developing.