Keppel DC Reit has agreed to acquire data centre Intellicentre 2 (IC2) in Sydney from Macquarie Telecom (MT) for A$43.3 million (S$44.9 million).
In a statement on Thursday (May 28), Keppel said the acquisition is the first for data centre Reit, five months after its listing on the Singapore Exchange.
IC2 is located within the Macquarie Business Park which specialises in the communications and information technology (IT) sectors. It was completed in 2012 and has a total lettable area of 8,169 square metres (sqm) and sits on approximately 20,000 sqm of freehold land.
Australian-listed MT will sign a 20-year triple-net lease agreement with Keppel DC REIT. The deal includes a mechanism for annual rental escalation and options to extend the lease.
MT will also manage the facility and be responsible for all property-related outgoings.
Keppel DC REIT’s CEO Mr Chua Hsien Yang said “this acquisition builds on the Reit’s established track record in Sydney and expands its footprint in Australia. Keppel DC REIT will be well-positioned to tap the market’s growth potential”.
The acquisition will be fully funded initially by debt and the deal is expected to be completed in the third quarter this year. The inclusion of IC2 will bring Keppel DC REIT’s portfolio to nine data centres across Asia Pacific and Europe, with an assets under management value of approximately S$1.07 billion.
Source : Channel NewsAsia – 28 May 2015