Mapletree Industrial Trust (MIT) has entered into a 50-50 joint venture with Mapletree Investments Pte Ltd to acquire 10 data centers in the United States that operate under the Powered Base Building® brand.
Its partner is Digital Realty.
It will also co-invest in three turnkey data centers in North America.
Under the terms of the agreements, Mapletree Investments and Mapletree Industrial Trust will acquire the Powered Base Building® portfolio from Digital Realty for a total purchase price of approximately $557 million. These 10 properties are fully leased and are expected to generate 2020 cash net operating income of approximately $37 million.
Separately, an entity jointly owned by Mapletree Investments and Mapletree Industrial Trust will purchase an 80 percent interest, and Digital Realty will retain a 20 percent interest, in a joint venture on three fully stabilized hyper-scale facilities located in Ashburn, Va. Mapletree Investments and Mapletree Industrial Trust will acquire its 80 percent stake for approximately $811 million, valuing these three assets at approximately $1 billion. These three facilities are fully leased and are expected to generate 2020 cash net operating income of approximately $61 million. Digital Realty will continue to operate and manage these facilities, and the transaction will be completely seamless from a customer perspective.
The transactions are expected to close in late 2019 or early 2020 and are subject to customary closing conditions.
