When Keppel DC REIT listed on 12 December 2014, it appeared different, at least when compared to a typical property trust. The APN Asian REIT Fund participated in the initial public offer (IPO) and we’ve continued to add to our holding as our knowledge and conviction in the stock has increased. Pleasingly the company’s share price has increased almost 50% since listing.

Although such a price rise might have some people questioning how expensive it is, there are plenty of reasons that support its valuation. Keppel DC – the “DC” stands for data centres – is an unusual beast, a real estate investment trust (REIT) with all the safety and predictability of income a REIT implies, plus the kind of growth typically offered by a higher risk opportunity, but without so much risk.