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Mapletree Industrial Trust (MIT) and Mapletree Investments Pte Ltd (MIPL) jointly stated on Tuesday (24 October) that they have formed an unlisted single-purpose trust, which has agreed to acquire 14 data centres in the US for a total of US$750 million (S$1.02 billion).
The properties are being purchased from Carter Validus Mission Critical REIT, Inc by Mapletree Redwood Data Centre Trust (MRDCT), where MIT holds a 40 percent stake, while MIPL owns the rest.
All data centres are sited on a freehold land and has a combined net leasable area of about 2.3 million sq ft. As of 30 September 2017, 97.4 percent of the premises are occupied by 15 reputable firms from various industries like financial services, telecommunications and information technology.
“The target portfolio is anchored by long leases from established tenants, including Fortune Global 500 corporations and NYSE-listed/Nasdaq-listed companies,” said MIPL’s Group Chief Executive Officer Hiew Yoon Khong.
In addition, the selling price represents a 3.4 percent discount to the properties’ overall valuation of US$776.4 million, as assessed by Cushman & Wakefield Western, Inc. last month.
Upon completion of the deal by Q4 2017, revenue from data centres will account for 16 percent of MIT’s portfolio compared to 6.7 percent previously, added Tham Kuo Wei, CEO of Mapletree Industrial Trust Management Ltd.
This article was edited by Keshia Faculin.
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