Mapletree Industrial Trust (MIT) will be developing a build-to-suit data centre for an established data centre operator at an estimated development cost of $60 million.
The six-storey data centre, which will be located in the western part of Singapore, will have a gross floor area of about 22,480 sq m. It will be fully leased to the client, who the trust did not identify, for an initial lease term of more than 10 years, with staggered rental escalations as well as renewal options. The centre is expected to be completed in the second half of next year.
Mr Tham Kuo Wei, chief executive of the trust manager, noted that the project marks MIT's third data centre development and reinforces its strategy to grow the high-tech buildings segment by providing customised industrial real estate needs.
"The long-term lease commitment from an established client in the fast-growing data centre market will offer portfolio diversification and income stability to unit holders," he said.
The proposed site is well-connected to the Ayer Rajah Expressway and sits on a land area of some 8,992 sq m.
The site is located in a specialised industrial park for data centres with ready-built infrastructure catered to support multinational companies and enterprises. The site has been allocated by JTC Corporation and is zoned for Business 2 use with a land tenure of 30 years.
This will be the third data centre development in the MIT portfolio following the successful completion of Tata Communications Exchange at Paya Lebar iPark in 2010 and 26A Ayer Rajah Crescent for Equinix Singapore at one-north in 2015.