Mapletree Industrial Trust to acquire US data centre for up to $356.6m

The property valuation is up to 2.2% higher than the purchase considerations.

Mapletree Industrial Trust (MIT) has entered into a sale, purchase, and escrow agreement to acquire a US data centre for up to $356.5m (US$262.1m), according to a local bourse filing.

The property, located at Virginia, US, is fully leased on a triple net basis with a balance lease term of more than five years to a multinational company.

It has a valuation of between $278.8m (US$205m) and $361.8m (US$266m), based on a property valuation by Cushman & Wakefield commissioned by MIT management. This is 2.2% and 1.5% higher than the purchase considerations, respectively.

The deal is expected to be completed in Q1 2021.

The total acquisition cost comprises of a purchase consideration of between $272.8m (US$200.6m) up to $356m (US$262.1m); as well as other fees and expenses, including acquisition fee and professional fees, amount to about $5m (US$3.7m) and $6.5m (US$4.8m).

MIT may elect to receive part of its base fee in the form of units with respect to the property. In the first year following the deal’s completion, MIT may also elect to receive units as payment for up to 50% of the base fee in respect of the property, with the balance to be paid in cash.