Mapletree Industrial Trust to acquire Virginia data centre

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Mapletree Industrial Trust (MIT) is acquiring a data centre in the state of Virginia, USA.

Due to confidentiality reasons, additional details relating to the proposed acquisition, including its address, will be released in due course, said the REIT.

The acquisition consideration will be between USD200.6 million and USD262.1 million.

The data centre to be acquired is fully leased on a triple net lease basis with a balance lease term of more than five years to a multinational company with strong credit standing, MIT added.

The total acquisition cost is estimated to be approximately between USD204.3 million and USD266.9 million, including fees.

The proposed acquisition is in line with MIT’s investment strategy to acquire data centres worldwide beyond Singapore, said the REIT.

Upon Completion, MIT's assets under management (AUM) will increase from SGD6.6 billion as at 30 June 2020 to SGD6.9 billion.

Data centres will increase from 38.5% as at 30 June 2020 to 41.0% of the portfolio by AUM.

The REIT may fund the total acquisition outlay with debt financing, proceeds from an equity fund raising or internal cash resources.

The final decision regarding the funding will be made by the REIT’s manager at an appropriate time, taking into account the then prevailing market conditions, said MIT.

MIT was last done on the Singapore Exchange at SGD3.05, which implies a distribution yield of about 3.7% according to data compiled on the Singapore REITs table.

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