Mapletree Investments JV to acquire 14 US data centres at $1.02 bil

By Angela Teo / EdgeProp | October 30, 2017 9:42 AM SGT
Mapletree Investments and Mapletree Industrial Trust have formed a joint venture (JV) to buy 14 data centres in the US at about US$750 million ($1.02 billion).
According to Tham Kuo Wei, CEO of the manager of Mapletree Industrial Trust, the proposed acquisition will increase the contribution of data centres to the trust’s portfolio, from 6.7% to 16%.
The data centres sit on freehold land and have a total net lettable area of approximately 2.3 million sq ft. According to Mapletree, the portfolio of data centres have an occupancy of 97.4% as at Sept 30 and is leased to 15 tenants across industries such as telecommunications and financial services.
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Source: Mapletree
Besides a long weighted average lease to expiry (by gross rental income) of approximately 6.7 years, only 1.3% of the leases are expiring within the next three years, adds Mapletree.
The proposed acquisition is expected to be completed in 4Q2017.