Carter Validus sells a billion dollars worth of data centre assets
Thu 26 Oct 2017
Carter Validus Mission Critical real estate investment trust (REIT) has confirmed the sale of $1.065 billion (approx. £810 million) worth of data centre assets, through two separate transactions.
The Florida based firm will be selling a Chicago facility measuring 251,141 sq. foot to an affiliate of another major data centre REIT, Digital Realty, for around $315 million. The company states that the net book value of this site was approximately $227 million, as of the end of September.
The second acquisition of Carter Validus assets will be by Mapletree Investments Pte Ltd (MIPL) and Mapletree Industrial Trust, which will pay around three-quarters of a billion dollars for a 14-property data centre portfolio in the United States. The net book value of this portfolio was estimated to be $598 million by Carter Validus.
Mapletree is a Singapore based investment house, which has split the purchase 60/40 between its Investments and Industrial Trust arms. MIPL CEO, Hiew Yoon Khong, said: “We are pleased to extend our presence in the United States in a sector with strong growth prospects. The target portfolio is anchored by long leases from established tenants, including Fortune Global 500 corporations and NYSE-listed/Nasdaq-listed companies.
“The growth in data creation and cloud computing will continue to drive the demand for data centre space, especially in the United States, leveraging on the highly developed infrastructure and favourable business environment. The proposed acquisition marks another milestone in our strategy to broaden our investments into sustainable growth sectors in developed economies.”
According to the Singapore firm, the data centres within the portfolio are located in established data centre markets, and come to a total lettable area of around 2.3 million sq. foot. They carry 15 existing tenants, in diverse industries such as telecoms, IT and finance.
Research house 451 Research has found that 28% of United States comprises about 28.0% of the global insourced and outsourced data centre market, and is expected to see a compound annual growth rate of 3.1% to 2020.
The transactions are both expected to close in the last quarter of this year.