Key Takeaways
- • Ascendas REIT acquired 11 European data centers from Digital Realty Trust subsidiaries for S$904.6 million ($674 million), with the transaction expected to close on March 18, 2021.
- • The portfolio spans four countries: four data centers in the U.K. (three in London, one in Manchester), three in Amsterdam, three in Paris, and one in Geneva, with a combined net leasable area of 61,637 square meters and 97.9 percent occupancy.
- • The transaction increases Ascendas REIT's data center portfolio value to S$1.5 billion ($1.1 billion), representing 10 percent of total investment properties under management and marking significant geographic diversification beyond its existing Singapore operations.
- • Six of the 11 assets are situated on freehold land, while the remaining five hold leasehold positions with a weighted average remaining lease term of 42.9 years; more than half the portfolio operates on triple-net lease structures.
Summary
Ascendas REIT, a Singaporean real estate investment trust, completed its acquisition of a 11-asset European data center portfolio from subsidiaries of Digital Realty Trust Inc. for S$904.6 million (approximately $674 million). The transaction closed on March 18, 2021, according to an announcement by Ascendas Funds Management (S) Ltd., the REIT's manager.
The portfolio comprises geographically diversified assets across four European markets, with concentration in major technology hubs. The United Kingdom holds four facilities—three located in the London area and one in Manchester. The Netherlands contributes three data centers in Amsterdam, while France provides three facilities in Paris. Switzerland rounds out the portfolio with a single data center in Geneva. Collectively, these 11 assets encompass 61,637 square meters (663,455 square feet) of net leasable area and maintain a strong 97.9 percent occupancy rate, demonstrating stable operational performance.
The transaction structure provides favorable long-term stability for the REIT. Six of the 11 data centers are situated on freehold land, providing permanent ownership rights, while the remaining five operate on leasehold arrangements with a weighted average remaining lease term of 42.9 years. More than half the portfolio is leased on a triple-net basis, a structure that shifts operating expenses, property taxes, and insurance costs to tenants, reducing the REIT's operational burden.
According to William Tay, Executive Director and CEO of Ascendas Funds Management, the acquisition represents a strategic expansion of the REIT's data center presence into key European markets. The transaction increases Ascendas REIT's total data center investment portfolio to S$1.5 billion ($1.1 billion), which now constitutes approximately 10 percent of its total investment properties under management. This acquisition meaningfully complements the REIT's existing data center operations in Singapore, establishing a more geographically diversified revenue base across high-growth technology infrastructure markets.
The portfolio comprises geographically diversified assets across four European markets, with concentration in major technology hubs. The United Kingdom holds four facilities—three located in the London area and one in Manchester. The Netherlands contributes three data centers in Amsterdam, while France provides three facilities in Paris. Switzerland rounds out the portfolio with a single data center in Geneva. Collectively, these 11 assets encompass 61,637 square meters (663,455 square feet) of net leasable area and maintain a strong 97.9 percent occupancy rate, demonstrating stable operational performance.
The transaction structure provides favorable long-term stability for the REIT. Six of the 11 data centers are situated on freehold land, providing permanent ownership rights, while the remaining five operate on leasehold arrangements with a weighted average remaining lease term of 42.9 years. More than half the portfolio is leased on a triple-net basis, a structure that shifts operating expenses, property taxes, and insurance costs to tenants, reducing the REIT's operational burden.
According to William Tay, Executive Director and CEO of Ascendas Funds Management, the acquisition represents a strategic expansion of the REIT's data center presence into key European markets. The transaction increases Ascendas REIT's total data center investment portfolio to S$1.5 billion ($1.1 billion), which now constitutes approximately 10 percent of its total investment properties under management. This acquisition meaningfully complements the REIT's existing data center operations in Singapore, establishing a more geographically diversified revenue base across high-growth technology infrastructure markets.
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