Mapletree Industrial Trust divests US data center

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Mapletree Industrial Trust has divested a data center in Southfield, Michigan, in the U.S. to a third party for US$10.0 million, the REIT said in a filing to SGX Friday.

The property’s occupancy has remained unchanged at 74.3 percent since acquisition in December 2017, Mapletree Industrial said.

“The manager has assessed that it would be difficult to lease out the remaining space in the near term. After evaluating all viable options and taking into  consideration the property’s small land plot, the manager concluded that divesting the property at the offered price was in the best interest of unitholders. The existing tenant was selected as the successful bidder with the highest bid,” the REIT said.

The net proceeds will be used to fund working capital requirements and/or reduce debt, the REIT said.

The property is a four-storey data center with a net lettable area of around 52,940 square feet, the filing said. The latest valuation of the property was at US$6.9 million at end-March, the filing said.

The data center contributed around 0.3 percent to Mapletree Industrial Trust’s gross portfolio revenue for the fiscal year ended 31 March, the filing said.

Post-divestment, the REIT holds 141 properties, including 85 in Singapore and 56 in North America.