Mapletree Industrial Trust inked built-to-suit project with Equinix Singapore

The 7 storey data centre is set to be on a 20-year lease.

According to DBS, Mapletree Industrial Trust (MINT) announced an agreement to develop a ‘built-to-suit’ facility for Equinix Singapore, a 7 storey, high specification property located in One-North (land allocated by JTC) which will primarily be used as a data centre. 

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On completion, Equinix will sign a long term lease of 20 years with step-ups and further renewal options. Equinix have an option to enhance and add additional infrastructure at two floors of this proposed faclity where additional rent will be payable.  

We like this deal as (i) the long lease provides good income visibility for this proposed investment, with annual stepups providing longer term organic growth;

(ii) high returns on cost of 7.75% (on estimated rent of S$2.0 psf pm ) for this property, which will be accretive to distributions;

(iii) quality earnings backed by a blue chip tenant - Equinix Sinapore is a subsidiary of NASDAQ-listed Equinix Inc. a global interconnection and data centre company.