Equinix Singapore has agreed to buy Mapletree Industrial Trust’s Singapore data center for US$91.2 million (S$125 million).
Equinix Singapore gave notice to Mapletree that they wish to purchase the SG3 data center, for which they had been a fully leased tenant of since 2015.
The seven-storey data center was the only facility in Mapletree’s portfolio that provided Equinix with the option to purchase the data center.
The US$91.2 million sale price was valued by Savills Valuation and Professional Services on March 31 2020, taking into account a 23.3% premium over the development cost of US$74 million (S$101.4 million).
Mapletree announced in a Singapore Exchange filing on Friday that the data center brought in approximately 2.2% of the real estate investment trust’s gross revenue for the year ending March 31 2020.
The deal between Equinix Singapore and Mapletree is expected to be paid in cash by the fourth quarter of 2020, subject to the approval of JTC Corporation, the government agency responsible for industrial development.
Proceeds from the sale will be used to fund other Mapletree investments, reduce any existing debt or make distributions to unit holders.
The SG3 data center located at 26A Ayer Rajah Crescent, near Queenstown in Singapore, is Equinix’s largest data center in Asia Pacific, spanning 35,000 square metres and containing a 5,000 rack capacity.
Mapletree began constructing the data center in 2013 within the one-north business park, close to Equinix’s SG1 data center, enabling dark fibre interconnection.
The deal to purchase SG3 follows Equinix’s US$161 million expansion plan into India with their acquisition of two GPX data centers as well as a US$51m investment to support digital transformation in Hong Kong.
The global interconnection and data center company also announced a US$1 billion joint venture with Singapore’s sovereign wealth fund, GIC, to build three hyperscale data centers in Japan.
