The Salim Group and the Keppel Group, through the Alpha Data Centre Fund (Alpha DC Fund), managed by Alpha Investment Partners Limited (Alpha), and Keppel Data Centres Holding Pte Ltd (Keppel Data Centres), have signed conditional agreements to jointly develop and operate a high-availability data centre in Bogor, about 35km distance from Jakarta, Indonesia.

The data centre, IndoKeppel Data Centre 1 (IKDC 1), will be developed and operated by a 60:40 joint venture between the Salim Group and Keppel Data Centres. Development of the facility will take place over three phases and will feature a gross floor area of approximately 105,300 sq ft with Tier 3 concurrent maintainability standards for power and cooling. The construction of the data centre's core and shell as well as first phase fit-out is expected to be completed by the first half of 2020.

Separately, IKDC 1 and its underlying 3ha land plot will be held by a 60:40 joint venture between the Salim Group and the Alpha DC Fund respectively. It is envisioned that the 3ha land plot will be the first phase of a larger 7ha data centre campus development that will cater to growing demand for quality data centre space in Indonesia.

The Salim Group currently owns and operates a data centre in Indonesia serving financial institutions and enterprise customers. Together with the Keppel Group's established track record in owning, developing and operating high-availability data centres across the Asia Pacific and Europe, the collaboration pools both groups' expertise for the construction, fit-out and subsequent operation and maintenance of the data centre.

"The Salim Group is one of Indonesia's biggest conglomerates with many diversified assets ranging from food, banking and telecommunications. For the past decade, the group has been keen on preparing and expanding its Salim Digital Ecosystem to support the nation's transformation to Industry 4.0. It's here," said Sugiharto Darmakusuma, Director of Salim Group.

He added, "We have been actively investing in fibre connectivity for the past decade and now we are, I believe, one of the very few players in Indonesia who have this capability. We have fibre optics cables laid out all across Sumatra, Java all the way to Bali. We also have invested in our own submarine cables from Java to Singapore. We are expanding our data centres to achieve a global presence and we believe that Keppel Data Centres is the right partner to achieve that.

"With our extensive fibre optic connectivity throughout Indonesia and Keppel Data Centres' presence across the globe, we believe that we have met a perfect match to take part in the smart industry revolution."

Mr Alvin Mah, CEO of Alpha Investment Partners said, "The Alpha DC Fund is pleased to partner the Salim Group for a quality data centre project in a high-growth market such as Indonesia. The country's population of more than 260 million makes it the largest base of internet users in the region. With internet penetration rate currently at about 50 per cent, e-commerce and cloud service providers are realising the market's potential and are looking to make inroads, in turn bolstering data centre demand.

"Unique asset classes such as data centres continue to attract strong investor interest. We look forward to adding another quality asset to the Fund's portfolio with the aim of delivering the best returns to investors," he added.

Indonesia's data centre services market is one of the fastest growing in the region with a CAGR (compound annual growth rate) of 35%¹. Positive growth drivers such as data onshoring regulations, increased smartphone adoption and the growing popularity of e-commerce are expected to generate healthy demand for quality data centres with high resiliency.

Mr Wong Wai Meng, CEO of Keppel Data Centres said, "As the owner and operator of high-availability data centres across Asia Pacific and Europe, Keppel Data Centres has established a reputation as a trusted solutions provider among its blue chip customers. We understand their unique requirements, including the need to scale up rapidly in response to demands from edge computing and enterprise workloads shifting to the cloud."

"The partnership with the Salim Group is a prime example of Keppel Data Centres' strategy of working with strong local players in high growth markets to design and build the robust infrastructure necessary for the digital economy's expansion and future proofing. We make sure that there's flexibility for growth and future capacity when our customers need it - power, space and connectivity should always be available to allow our customers to continue growing in our data centres."

The abovementioned transaction is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Corporation Limited and Keppel Telecommunications & Transportation for the current financial year.

¹ _{Surfing the data wave, The surge in Asia Pacific's data centre market
https://www.pwc.com/sg/en/publications/assets/surfing-the-data-wave.pdf}

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For more information, please contact:

About Alpha Investment Partners
Alpha Investment Partners (Alpha) is a wholly-owned subsidiary of Keppel Capital, a premier asset manager in Asia and the asset management arm of Keppel Corporation Limited.

Alpha has been adding value for investors by constantly seeking innovative solutions throughout its investment process since 2004.

A manager of both private and public real estate funds, Alpha has an institutional investor base comprising renowned pension plans, financial institutions, fund of funds, insurance companies, endowments and family offices spanning Europe, North America, Asia and the Middle East.

Its private real estate funds are invested in different asset classes including real estate and data centres, and across the risk spectrum in the core, core-plus, value-add and opportunistic space. Each fund has a specific strategy to leverage prevailing opportunities, as well as seek a blend of income and capital returns according to its risk profile. Alpha also manages the Alpha Real Estate Securities Fund, an open-ended fund that invests in listed REITs and real estate securities predominantly in Asia.

www.alphaipartners.com

About Keppel Capital
Keppel Capital is a premier asset manager in Asia. It is the asset management arm of Keppel Corporation Limited, a multi-business company providing solutions for sustainable urbanisation, with key businesses in offshore and marine, property, infrastructure and investments.

With assets under management of approximately S$29 billion as at end-2017, Keppel Capital has a diversified portfolio that includes real estate, infrastructure and data centre properties in key global markets.

Keppel Capital aims to create value and deliver sustainable returns for institutional and retail investors through a range of products including REITs, business trusts, private funds investing in real estate in Asia, separate accounts and pooled investment vehicles.

The asset managers under Keppel Capital include Keppel REIT Management Limited, Alpha Investment Partners Limited, Keppel Infrastructure Fund Management Pte Ltd, Keppel DC REIT Management Pte Ltd and Keppel-KBS US REIT Management Pte Ltd.

http://www.kepcapital.com

About Keppel Data Centres Holding Pte Ltd
Keppel Data Centres Holding was formed in January 2011 as a 70-30 joint venture company between Keppel T&T and Keppel Land to consolidate their data centre assets and position the business for further growth. The company currently manages and operates a gross floor area of more than 648,500 sq ft in data centre, business continuity and disaster recovery centre space in Singapore.

http://www.keppeldatacentres.com

About Keppel Telecommunications & Transportation Ltd
Keppel Telecommunications & Transportation Ltd (Keppel T&T), is a subsidiary of Keppel Corporation Limited, a leading company listed on the Main Board of the SGX-ST with core businesses in offshore and marine, property, infrastructure and investments. Keppel T&T is also listed on the Main Board of SGX-ST with logistics and data centre operations in Europe and Asia-Pacific. In Singapore, wholly owned subsidiary Keppel Logistics has more than 40 years of experience in offering customised integrated logistics solutions. It currently also operates logistics facilities in China, Hong Kong, Malaysia, Indonesia, Vietnam and Australia.

Keppel Data Centres, Keppel T&T's data centre division has a track record of more than a decade in owning, developing and managing high quality carrier-neutral data centre facilities that support mission-critical computer systems. Keppel T&T is also the sponsor of
Keppel DC REIT, the first data centre Real Estate Investment Trust (REIT) listed in Asia and on the SGX-ST. Together with assets owned through Keppel DC REIT, Keppel T&T has a global portfolio of 19 data centres located in key data centre hubs across Asia Pacific and Europe.

http://www.keppeltt.com.sg