Key Takeaways
- • Ascendas REIT agreed to acquire 11 European data centers from subsidiaries of Digital Realty Trust for S$904.6 million (US$678 million), according to Data Center Dynamics.
- • The portfolio spans four UK facilities, three each in France and the Netherlands, and one in Switzerland, with locations in London, Manchester, Amsterdam, Geneva and Paris.
- • The target portfolio is 97.9% occupied by 14 customers, including HSBC, Equinix, BT and Bouygues Telecom, and totals 61,600 sq m (663,400 sq ft) of net lettable area.
- • Pricing is £250 million (US$348 million) for the UK assets and approximately €276 million (US$330 million) for the mainland European facilities.
- • The deal marks Ascendas REIT's first data center investment in Europe and lifts its data center exposure to a stated S$1.5 billion, or 10% of investment properties under management.
Summary
Singapore-based real estate investment trust Ascendas REIT has announced the acquisition of 11 data centers across Europe from subsidiaries of Digital Realty Trust, Inc. for S$904.6 million (US$678 million), according to Data Center Dynamics. Ascendas Funds Management Limited, the manager of Ascendas Real Estate Investment Trust, is the acquiring entity.
The portfolio comprises four facilities in the UK, three each in France and the Netherlands, and one in Switzerland. The properties are located in London, Manchester, Amsterdam, Geneva and Paris. Ascendas reports the portfolio is 97.9% occupied by 14 customers, with total net lettable area of 61,600 sq m (663,400 sq ft). Named tenants include HSBC, Equinix, BT and Bouygues Telecom. Pricing is £250 million (US$348 million) for the UK properties and approximately €276 million (US$330 million) for the mainland European facilities.
William Tay, executive director and CEO of the fund, described the acquisition as a unique opportunity to own a well-occupied portfolio in key European markets. He said it complements the REIT's existing Singapore data center portfolio and will raise the sector's contribution to S$1.5 billion, or 10% of investment properties under management. Tay added that the REIT will continue to pursue further data center acquisitions as opportunities arise.
The transaction is the REIT's first data center investment in Europe. As part of the agreement, Digital Realty will provide one year of property and facilities management services for the 11 facilities following completion. Digital Realty has also reported completing the sale, with publisher coverage citing a figure of approximately US$680 million for the 11 European data centers.
The portfolio comprises four facilities in the UK, three each in France and the Netherlands, and one in Switzerland. The properties are located in London, Manchester, Amsterdam, Geneva and Paris. Ascendas reports the portfolio is 97.9% occupied by 14 customers, with total net lettable area of 61,600 sq m (663,400 sq ft). Named tenants include HSBC, Equinix, BT and Bouygues Telecom. Pricing is £250 million (US$348 million) for the UK properties and approximately €276 million (US$330 million) for the mainland European facilities.
William Tay, executive director and CEO of the fund, described the acquisition as a unique opportunity to own a well-occupied portfolio in key European markets. He said it complements the REIT's existing Singapore data center portfolio and will raise the sector's contribution to S$1.5 billion, or 10% of investment properties under management. Tay added that the REIT will continue to pursue further data center acquisitions as opportunities arise.
The transaction is the REIT's first data center investment in Europe. As part of the agreement, Digital Realty will provide one year of property and facilities management services for the 11 facilities following completion. Digital Realty has also reported completing the sale, with publisher coverage citing a figure of approximately US$680 million for the 11 European data centers.
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