Mapletree Industrial Trust divests data centre in Michigan for US$10m

MAPLETREE Industrial Trust : ME8U 0% (MIT) has divested a data centre property in Michigan, United States for a proposed sale price of US$10 million, its manager said in a bourse filing on Friday (Jun 10).

The 4-storey data centre, with a net lettable area of 52,940 square feet (sq ft), is located in Southfield, Michigan and is part of the Northwestern Office Center office park. It sits on freehold land with a land area of 121,122 sq ft.

The manager noted that the occupancy rate of the data centre remained unchanged at 74.3 per cent since it was acquired in 2017.

In 2017, MIT acquired the property through a 40:60 joint venture with Mapletree Investments in 2017, before it acquired the remaining 60 per cent interest in 2020.

The manager expects it would be difficult to lease out the remaining space in the near term, and after evaluating all viable options and taking into account the property’s small land plot, it said divesting the property was “in the best interest of unitholders”.

The property had contributed about 0.3 per cent to MIT’s portfolio gross revenue for its financial year ended March.

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Net proceeds from the proposed divestment will be used to fund working capital requirements and/or reduce existing debt.

The divestment was completed on Jun 9, following which MIT will own 141 properties, comprising 85 properties in Singapore and 56 properties in North America.

Units of MIT closed flat at S$2.53 on Thursday.