MIT completes acquisition of 14 US data centres for $292.8m

It will use a portion of the $410m proceeds from its private placement in June.

Mapletree Industrial Trust (MIT) has completed the proposed acquisition of the remaining 60% interest in 14 data centres in the US, currently held by Mapletree Redwood Data Centre Trust, for $292.8m (US$215.3m), according to an SGX filing.

To fund the acquisition, MIT plans to use $294.5m from the $410m it raised from a private placement in June. More than 146.41 million new units were issued during the private placement at a price of $2.8 per new unit.

It will also be used to pay for professional and other fees and expenses for the purchase of the data centres.

Also Read: MIT's next buy could be Mapletree's stakes in US data centres: analyst

Meanwhile, approximately $109m or 26.6% of the gross proceeds of the private placement will be used to repay MIT’s debt, fund future acquisitions and for general corporate and working capital purposes, the bourse filing stated.

Another $6.5m or approximately 1.6% of the gross proceeds will be used by MIT to pay for estimated fees and expenses incurred or to be incurred in connection with the private placement.