Singapore-listed industrial REIT, Mapletree Industrial Trust (MIT), is divesting its property at 26A Ayer Rajah Crescent to Equinix Singapore at SGD125 million (USD91 million).
Equinix is exercising the option to purchase within the lease agreement signed between itself and the REIT in March 2015.
The property is a seven-storey data centre with a total gross floor area of about 384,802 square feet, and a 30-year land lease that commenced on 22 May 2013.
The Property is a build-to-suit data centre, which was developed by MIT for Equinix, and obtained its temporary occupation permit on 27 January 2015.
The sale price is in line with the property’s valuation as at 31 March 2020 by Savills Valuation and Professional Services.
The sale price represents a 23.3% premium over the development cost of SGD101.4 million.
The property contributed about 2.2% to MIT’s portfolio gross revenue in the financial year ended 31 March 2020.
The sale price will be paid in cash, and MIT’s manager will receive a divestment fee of 0.5% of the proceeds.
Once the divestment is completed by 4Q 2020, the REIT may deploy the proceeds to reduce debt, fund investments, or make distributions to unitholders.