SINGAPORE – Mapletree Investments Pte Ltd (MIPL) and Mapletree Industrial Trust (MIT) announced the formation of a joint venture that will acquire 14 data centres in the US for USD750 million.
The JV entered into a conditional purchase and sale agreement through an unlisted single trust, Mapletree Redwood Data Centre Trust (MRDCT) to co-invest in a portfolio of 14 data centres in the US from Carter Validus Mission Critical REIT.
Under the JV agreement, MIPL holds 60% interest in MRDCT while MIT holds the remaining 40% interest.
The 14 data centres are strategically located in established data centre markets across the US. These properties are sited on freehold land with a total net lettable area of about 2.3 million square feet.
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“The Target Portfolio is anchored by long leases from established tenants, including Fortune 500 corporations and NYSE-listed/Nasdaq-listed companies,” said MIPL Group Chief Executive Officer Hiew Yoon Khong.
The growth in data creation and cloud computing will continue to drive the demand for data centre space, especially in the US, leveraging on the highly developed infrastructure and favourable business environment.
“The proposed acquisition marks another milestone in our strategy to broaden our investments into sustainable growth sectors in developed economies,” he added.
The JV will enable MIT to leverage on MIPL’s financial strength, local market experience and resources in the US and ensure a smooth continuation of the operations.
In addition, teh remaining 60% interest in MRDCT held by MIPL is similarly subject to the right of first refusal granted by MIPL to MIT.
The purchase consideration of USD750 million for the target portfolio is about 3.4% lower than the independent valuation of USD776.4 million provided by Cushman & Wakefield Western, using the sales comparison and income capitalisation approach.
The proposed acquisition is expected to complete in the fourth quarter of this year. – BusinessNewsAsia.com