Australian digital infrastructure company Macquarie Technology Group has bought two data centres in Sydney’s north from Keppel DC REIT for A$174m (€120m).
Singapore-listed Keppel DC REIT said it had sold Intellicentre Campus in Macquarie Park at a 35.4% premium to the property’s valuation of A$128.5m as of 31 December 2023.
Intellicentre Campus comprises the Intellicentre 2 and Intellicentre 3 East assets located at Macquarie Park Data Centre Campus. Keppel DC REIT purchased the assets in two transactions when the trust was first listed in 2015 for a total investment of A$70m.
David Tudehope, CEO of ASX-listed Macquarie Technology Group said: “The acquisition of the land and buildings at Macquarie Park gives us long-term control of the campus at a time when we are making significant investment in expanding capacity by building IC3 SuperWest [a third building at the campus].”
The acquisition, totalling A$190m, including transaction costs and stamp duty, provided greater flexibility for its future capital management and created value over the long-term life of the assets.
To fund the acquisition, the Macquarie entity is raising A$100m two-tranche placement and a A$90m data centre loan note.
Keppel DC REIT will re-invest A$90m of the sale proceeds into the Macquarie loan note, known as Australia Data Centre note.
Keppel DC REIT said through the Australia Data Centre note, the trust would retain its exposure to the Australia data centre market and receive a regular income stream starting from approximately A$6.3m per year, with a CPI-linked annual escalation mechanism, for 8.5 years.
Loh Hwee Long, CEO of Keppel DC REIT Management, said the divestment had crystallised value from its investment in Intellicentre Campus at a highly attractive premium.
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