Keppel DC REIT has sold two data centers in Sydney’s north to Macquarie Technology Group for A$174m (€120m). The Intellicentre Campus in Macquarie Park, consisting of Intellicentre 2 and Intellicentre 3 East assets, was acquired by the Australian digital infrastructure company. This purchase represents a 35.4% premium to the valuation of the property 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 center 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 center 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 this divestment has realized value from their investment in Intellicentre Campus at a highly attractive premium. This strategic move showcases how technology companies are continuously adapting to changes in digital infrastructure markets and collaborating with others in order to achieve growth opportunities.