CapitaLand Ascendas REIT (CLAR) has announced the successful finalization of its acquisition of a Tier III colocation data center facility located in Watford, North-West London, United Kingdom. The facility was acquired from an independent global data center operator for £119.4 million (approximately S$199.9 million).
CLAR effectively procured the property via its subsidiary, Ascendas Reit (Europe Sub 3) Ltd., by securing full ownership of the entity that holds the property. The comprehensive cost of this strategic acquisition totals £128.1 million (approximately S$214.4 million). Within this sum, the purchase amount stands at £125.1 million (about S$209.4 million), complemented by a £1.2 million acquisition fee (roughly S$2.0 million), and additional fees totaling £1.8 million (approximately S$3.0 million).
The acquisition price was reached through negotiations, underscoring its favorable position relative to the property’s independent market valuation of £119.4 million (about S$199.9 million). To fuel this acquisition, funds will be derived from a combination of equity fundraising and debt financing.
The data center facility, spanning two stories, boasts the latest high-specification features that align with Tier III colocation standards. Situated in the locale of Watford, North-West London, the center covers a substantial land area of 25,000 sqm (269,097.76 sq ft) and provides an expansive lettable space of 8,412 sqm.
As of June 30, the center’s occupancy rate stands at 80%, while its weighted average lease expiry (WALE) by gross revenue spans a period of 3.3 years. Hosting a total of five tenants by June 30, the data center remains a pivotal hub of technological activity. With a substantial remaining land lease tenure of 85 years, its potential for future growth and innovation remains robust.
CapitaLand has been investing in data center developments in different regions in Asia Pacific. Last year, the company announced investing Rs 11000 crores over the next five to six years with a plan to create a large infrastructure and expand its data center footprint across 5-6 major metros in India.
Additionally, CapitaLand Investment Limited (CLI) has established a China data center development fund, CapitaLand China Data Centre Partners (CDCP) which will be committed to invest in two hyperscale data center development projects in Greater Beijing, and upon completion of the projects, will add approximately S$1 billion to CLI’s funds under management.
