Singapore listed-Mapletree Industrial Trust (MIT) has invested US$1.32bn (€1.1bn) to buy 29 data centres in the US from Sila Reality Trust.

Tham Kuo Wei, CEO of Mapletree Industrial Trust Management, the trust’s manager, said: “This portfolio acquisition will enable us to scale up our data centre presence significantly and diversify our footprint across key markets in the United States.”

The portfolio would increase MIT’s geographical diversification giving it exposure to new established markets in Chicago, Los Angeles and Houston and at the same time deepening its footprints in North Virginia and Atlanta.

Tham regarded the investment as “a significant milestone” for the REIT, which, in 2017, made a strategic move to expand into data centres in a bid to reshape MIT’s portfolio toward “higher value uses”.

“Data centres will increase to 53.6% of MIT’s assets under management from 41.2% as at 31 March 2021,” he said.

If the deal is completed, expected in the third quarter, it will increase MIT’s assets under management to S$8.6bn (€5.3bn), from S$6.8bn.

The Singapore-based investor plans to fund the deal with debt and equity. MIT launched a placement simultaneously to raise S$800m towards the funding of the acquisition.

Michael A Seton, chief executive officer and president of Sila Realty Trust, said the disposal was another key step in the company’s evolution to provide a clear path to pursue a strategy as a pure-play healthcare REIT.

To read the digital edition of the latest IPE Real Assets magazine click here.

Topics

Related Companies