Mapletree Industrial Trust seals joint acquisition of 14 US data centres

Mapletree Industrial Trust (MIT) has completed its US$753.8 million (S$1 billion) joint acquisition of 14 data centres in the United States, the real estate investment trust said yesterday.

The acquisition, with MIT's sponsor - privately held Mapletree Investments - was done through an unlisted single purpose trust, Mapletree Redwood Data Centre Trust. The total investment comprises a purchase consideration of US$750 million, as well as estimated stamp duty and other expenses of about US$3.8 million. In all, MIT's investment in the joint venture comes up to about US$304.7 million.

This includes MIT's proportionate share of the purchase consideration worth US$300 million, estimated stamp duty and other expenses of about US$1.5 million, acquisition fee payable to Mapletree Industrial Trust Management - manager for the joint venture, amounting to US$3 million to be paid in cash, and other joint venture-related expenses of about $200,000.

Separately, the trust manager said that out of the $155.7 million gross proceeds from its private placement, about $153.1 million, or 98.3 per cent, has been used to partially fund MIT's net requirement of $169.6 million with regard to the joint venture and acquisition. The remaining $2.6 million, or 1.7 per cent of proceeds, has been used to pay placement-related expenses.

Accordingly, proceeds from the private placement would be fully utilised, the trust manager said.

MIT placed out new units in October worth $155.7 million or $1.90 apiece. MIT units yesterday closed at $2.04, unchanged from the previous day.

A version of this article appeared in the print edition of The Straits Times on December 22, 2017, with the headline 'Mapletree Industrial Trust seals joint acquisition of 14 US data centres'. Print Edition | Subscribe