Keppel DC REIT Management, the manager of Keppel DC REIT, will sell its entire stake in Intellicentre Campus to Macquarie Data Centres Macquarie Park Property SubTST for $152.1 million.

Keppel DC REIT holds a 100% freehold stake in the data centre, which is located within Macquarie Park in the north of Sydney and is 12km from the CBD.

The property comprises two buildings – the two-storey Intellicentre 2 Data Centre completed in 2012, and the Intellicentre 3 East Data Centre completed in 2022.

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The property was last valued in 2023 at approximately $112.3 million. As a result, the agreed sale value for the property is 35.4% above its last evaluation. The divestment also represents an exit cap rate of approximately 3.6%.

Macquarie Data Centres Macquarie Park Property SubTST is a wholly owned subsidiary of Australian-listed Macquarie Technology Group (MTG). MTG is also the ultimate parent company of Macquarie Data Centres, the existing tenant of the property.

In conjunction with the divestment, Keppel DC REIT will reinvest approximately $78.7 million of the sale proceeds in an Australian data centre note issued by Macquarie Data Centres Group. The note is guaranteed by MTG and will allow Keppel DC REIT to retain some exposure to the Australian data centre market over the next 8½ years.

Keppel DC REIT will receive a regular income stream starting from $5.5 million per year from the note, escalating based on Australia’s consumer price index. This will mirror the rental the REIT would have received from the property for the next 8½ years had they held onto it.

The REIT manager will repay existing loans amounting to approximately $37.7 million related to the original investment of Intellicentre Campus.