Mapletree Industrial Trust to divest data centre for S$125m

MAPLETREE Industrial Trust (MIT) has agreed to sell a data centre located at 26A Ayer Rajah Crescent, Singapore to Equinix Singapore at a proposed price of S$125 million. Equinix had exercised its purchase option that was within the 2015 lease agreement it had with MIT.

The sale price represents a 23.3 per cent premium over the development cost of S$101.4 million. The property contributed about 2.2 per cent to MIT's portfolio gross revenue in the financial year ended March 31, 2020.

The data centre spans seven storeys and has a total gross floor area of about 384,800 square feet. Its 30-year land lease commenced on May 22, 2013.

The property is a build-to-suit data centre that was developed by MIT for Equinix. It is fully leased to Equinix.

The sale price takes into consideration the latest available valuation of S$125 million as at March 31, 2020 by Savills Valuation and Professional Services.

The divestment is expected to take place by the fourth quarter of 2020 and is subject to approval by JTC Corporation.

The counter closed at S$3.11 on Friday, down S$0.05 or 1.58 per cent.