Mapletree Industrial Trust to sell Minnesota data centre property for US$9.8 million

[SINGAPORE] Mapletree Industrial Trust (MIT) is set to sell a data centre property in the US for about US$9.8 million in cash after current tenant DataBank Properties gave notice of its intention to exercise an option to purchase the building.

The single-storey facility is located at 3255 Neil Armstrong Boulevard, Eagan, Minnesota. Its lease agreement, dated Mar 18, 2014, included an option for the tenant to purchase the property, said MIT’s manager on Tuesday (Sep 29).

Net proceeds from the sale may be used to pare down debts and/or fund working capital requirements, it added.

The property has a net lettable area of about 87,402 square feet (sq ft) and is on freehold land with an area of about 343,253 sq ft. It was completed in 1998 and is fully leased to DataBank, with the current lease expiring in September 2029.

MIT acquired the property on Jul 22, 2021, as part of a portfolio of 29 data centres in the US. The sale price represents a 9 per cent premium above MIT’s purchase price of US$9 million and is 10 per cent below the independent valuation of US$10.9 million as at Mar 31.

The property contributed about 0.2 per cent to MIT’s portfolio gross revenue in the financial year ended Mar 31, said the manager.

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DataBank has paid a deposit equivalent to 3 per cent of the sale price, with the balance sum to be paid on completion of the deal by the fourth quarter of this year.

Units of MIT rose 0.5 per cent to close S$0.01 higher at S$1.87 on Monday.