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Global data centre operator Equinix is set to strengthen its presence in Singapore after it agreed to lease Mapletree Industrial Trust’s (MIT) industrial facility at 7 Tai Seng Drive.
Since September 2018, MIT has been progressively upgrading the seven-storey property and renovation works have been ramped up with the exit of the facility’s last occupant in November 2018.
Upon completion of the upgrading works, it will become a data centre with a gross floor area (GFA) of around 256,600 sq ft. Aside from having greater floor loading capacity and the capability to handle higher power levels, the property will feature additional telecommunication infrastructure and more space for mechanical and electrical equipment.
The property stands on a plot zoned for Business 2 purposes. It has a 30-year leasehold tenure starting from 16 March 1993, with an option to extend by another 30 years. This will be MIT’s third data centre in Tai Seng Industrial Estate, which is a strategic location for such operations thanks to its connectivity and power availability.
Overall, the cost of purchasing and renovating the facility is expected to reach $95 million, including the purchase consideration of $68 million.
The transaction expands Equinix’s current operations at MIT’s existing properties – a purpose-built data centre facility for Equinix at 26A Ayer Rajah Crescent in Singapore and a complex at 180 Peachtree, Atlanta in the US.
“We are delighted that Equinix has again selected MIT to support its growth. This project is in line with our expanded strategy to capture opportunities in the fast-growing data centre sector,” said Tham Kuo Wei, CEO of Mapletree Industrial Trust Management.
Equinix said on Twitter that the new International Business Exchange (IBX) data centre (SG4) is expected to open by Q4 2019.
“We are pleased to collaborate with MIT for our expansion in Singapore. The new data centre will provide location diversity from our existing IBX data centres in Singapore – SG1, SG2 and SG3,” noted Andrew Rigoli, vice president for corporate development & strategy at Equinix Asia-Pacific.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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