Mapletree has announced the acquisition of 14 US data center facilities for US$4.74 billion. The firm’s trustee, DBS Trustee Limited, has entered into agreements for the proposed acquisition of the remaining 60% interest in the 14 data centers in the US currently held by Mapletree Redwood Data Centre Trust (MRDCT) at a purchase consideration of $210.9 million.
To improve MIT’s income stability
MIT holds a 40% interest in MRDCT, with Mapletree DC Ventures Pte. Ltd., a wholly-owned subsidiary of Mapletree Investments Pte Ltd (MIPL), holding the remaining 60% interest. With the completion of this acquisition, MIT will hold a 100% interest in the 14 data centers.
Tham Kuo Wei, CEO of MIT, said,
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“The proposed acquisition increases our exposure to the resilient data center segment and deepens our presence in the United States. The United States is the largest and most established data center market in the world. It offers attractive growth prospects and is well supported by favorable supply-demand dynamics. The proposed acquisition will improve MIT’s income stability with the increased freehold land component and long leases with annual rental escalations.”