Singapore’s Mapletree Industrial Trust buys 14 data centers in USA for $215m

Mapletree Industrial Trust (MIT), has completed their purchase of 14 data centers in the USA for US$215.3 million (S$292.8 million).

The Singapore Exchange listed real estate investment trust finished the acquisition of the remaining 60% interest in the data centers held by Mapletree Redwood Data Centre Trust, a trust formed by Mapletree Investments Pte Ltd and Mapletree Industrial Trust.

The deal, first announced in June, increased the Trust’s data center footprint to 39% of assets under management by the REIT.

To fund the deal, MIT initiated a private placement of 146.4 million new units at a price of US$2.05 (S$2.80) per unit. In the end, the Trust raised more than US$300 million (S$410 million), with demand coming from ‘a broad spectrum of investors, including new and existing institutional investors’.

Of the money raised, US$79.9 million will be used to repay MIT’s debt and fund future acquisitions, US$4.7 million will pay the fees incurred by the private placement, and the remaining US$215.9 million (S$294.5 million) will be spent on the acquisition of the 14 data centers.

The US data centers, originally acquired by Mapletree Redwood Data Centre Trust in 2017, are strategically placed around the country on freehold land with a lettable area of 2.3 million square feet in the following locations:

  • 2 Christie Heights, Leonia, New Jersey
  • 180 Peachtree Street, Atlanta, Georgia
  • 402 Franklin Road, Brentwood, Tennessee
  • 1001 Windward Concourse, Alpharetta, Georgia
  • 1221 Coit Road, Plano, Texas
  • 1805 Center Park Drive, Charlotte, North Carolina
  • 2000 Kubach Road, Philadelphia, Pennsylvania
  • 2775 Northwoods Parkway, Atlanta, Georgia
  • 3300 Essex Drive, Richardson, Texas
  • 5000 South Bowen Road, Arlington, Texas
  • 5150 McCrimmon Parkway, Morrisville, North Carolina
  • 7337 Trade Street, San Diego, Texas
  • 19675 W Ten Mile Road, Southfield, Michigan
  • N15W24250 Riverwood Drive, Pewaukee, Wisconsin

While MIT targets expansion into the United States, Equinix Singapore announced last month that it would buy the Trust’s Singapore data center known as SG3 for US$91.2 million (S$125 million).

Proceeds from the sale will be used to fund other Mapletree investments, reduce any existing debt or make distributions to unit holders.

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