Singapore's Keppel will spin off its data centre joint venture (JV) to unit Keppel DC REIT for a total gross divestment price of S$1.38 billion ($1.03 billion), the two companies said on Tuesday.

The JV between Keppel's Connectivity Division and Cuscaden Peak Investments owns the Keppel Data Centre Campus in Singapore, comprising two operational centres - KDC SGP 7 and KDC SGP 8.

Keppel's share of the total gross divestment price, which includes the estimated consideration for Keppel's 51% stake in the JV should the call option be exercised, will be about S$280 million.