Keppel DC REIT has sold two data centers in Sydney’s north to Macquarie Technology Group for A$174m (€120m). The purchase includes the Intellicentre Campus in Macquarie Park, consisting of Intellicentre 2 and Intellicentre 3 East assets. This is a 35.4% premium to the property’s valuation as of December 31, 2023.
Macquarie Technology Group’s CEO, David Tudehope, expressed that acquiring the land and buildings at Macquarie Park provides long-term control of the campus, especially as they are expanding capacity by constructing IC3 SuperWest, a third building at the campus. The total acquisition cost of A$190m, including transaction costs and stamp duty, offers greater flexibility for future capital management and creates value over the long-term life of the assets.
To fund the acquisition, Macquarie Technology Group is raising A$100m through a two-tranche placement and a A$90m data centre loan note. Keppel DC REIT will reinvest A$90m of the sale proceeds into the Macquarie loan note, known as Australia Data Centre note. This allows the trust to retain exposure to the Australian data centre market and receive a regular income stream with CPI-linked annual escalation for 8.5 years.
Loh Hwee Long, CEO of Keppel DC REIT Management, emphasized that the divestment has realized value from their investment in Intellicentre Campus at a highly attractive premium. This strategic move showcases the evolving landscape of the digital infrastructure market and the potential for growth and collaboration within the industry.
Macquarie Technology Group’s expansion into Sydney’s north will allow them to better serve their customers in this growing region while also providing new opportunities for growth in digital infrastructure.
Keppel DC REIT’s decision to sell these assets marks an important milestone in their ongoing strategy to maximize returns on their investments in digital infrastructure properties across Asia Pacific.
Overall, this acquisition represents a significant step forward for both companies as they continue to adapt to changes in technology and demand for digital services in Australia and beyond.