Mapletree Industrial Trust proposes US$11.8 million divestment of US data centre

[SINGAPORE] Mapletree Industrial Trust (MIT) is proposing to divest its data centre in Georgia, US, for US$11.8 million, it said on Wednesday (Apr 23).

It entered into a purchase and sale agreement for the proposed divestment of a single-story data centre in the Northwoods Business Center with a third-party buyer. The property, located at 2775 Northwoods Parkway, Norcross, Georgia, has net lettable area of about 32,740 square feet (sq ft) and stands on freehold land with an area of around 140,341 sq ft. 

Proceeds from the proposed sale, which is set to complete in Q2 2025, may be used to pare down debt and/or fund working capital requirements, said the manager. 

Lily Ler, chief executive of the manager, said: “The divestment enables us to… redeploy capital into other growth opportunities. We will continue to focus on our portfolio rejuvenation efforts through strategic divestments to improve portfolio quality and deliver sustainable returns to our unitholders.”

The property contributed to around 0.1 per cent of gross revenue in MIT’s portfolio for the fiscal year ended Mar 31, 2024. 

Noting that its current lease expires in August 2025, the manager said: “After evaluating all viable options and taking into consideration the property’s small land plot, the manager concluded that divesting the property at the offered price was in the best interest of unitholders.”

The sale price of US$11.8 million was derived after a competitive bid process conducted by an independent property consultant, the manager said. 

It represents an 18.6 per cent premium above an independent valuation of the property of US$9.95 million as at Mar 31.

The counter finished Wednesday 1 per cent or S$0.02 higher at S$2.05, before the announcement.