FOLLOWING ACQUISITION OF STAKE ACROSS 14 US FACILITIES
Singapore based investment company Mapletree Industrial Trust (MIT), has entered into an agreement with an undisclosed vendor to acquire a data center in Virginia, United States.
The acquisition deal which is expected to close in the first quarter of 2021, will cost MIT between US$200.6 million (approx. S$272.8 million) and US$262.1 million (approx. S$356.5 million).
As a manager of MIT, Mapletree Industrial Trust Management Ltd. further commissioned an independent property valuer, Cushman & Wakefield of North Carolina, Inc. to value the property and their valuations are respectively 2.2% and 1.5% higher than the actual purchase considerations.
As stated by MIT, the Virginia data center facility is currently fully leased on a triple net basis with a balance lease term of more than five years to a multinational company. It further mentioned that this proposed acquisition is in line with the company’s investment plan to acquire data centers across global markets beyond Singapore.
Last year, MIT signed a $1.4 billion deal to acquire 10 North American Digital Realty’s data centers, and established a joint venture with the seller on three additional hyperscale data centers in Ashburn, Virginia.
In January this year, Digital Realty announced the completion of the 10 Powered Base Building® portfolio acquisition deal with Mapletree Investments and Mapletree Industrial Trust (MIT). It was further reported that these 10 data centers are fully leased and are expected to generate 2020 cash net operating income of approximately $37 million, representing a 6.6% cap rate.
About two weeks ago, Mapletree Industrial Trust Management Ltd., as manager of MIT, announced the acquisition of 60% stake in 14 data centers sited across the United States. These facilities which are currently held by MIT’s subsidiary Mapletree Redwood Data Centre Trust (MRDCT) were operated as a joint venture between MIT and Mapletree Investments Pte Ltd (MIPL). With this stake acquisition, MIT has therefore, gained ownership of these US 14 facilities.