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.