Macquarie Technology Group, an Australian digital infrastructure company, has purchased two data centres in Sydney’s north from Keppel DC REIT for A$174m (€120m). The sale included the Intellicentre Campus located in Macquarie Park, comprising of the Intellicentre 2 and Intellicentre 3 East assets. Keppel DC REIT had initially bought the assets in two transactions in 2015 for A$70m, and the recent sale represented a 35.4% premium to its previous valuation of A$128.5m as of 31 December 2023.
David Tudehope, the CEO of Macquarie Technology Group, expressed that acquiring the land and buildings at Macquarie Park provided long-term control over the campus, especially as they expand capacity with the construction of IC3 SuperWest. The total acquisition cost, amounting to A$190m, including transaction expenses and stamp duty, allows for increased flexibility in capital management and the creation of value over the assets’ lifespan.
To finance the acquisition, Macquarie Technology Group is raising A$100m through a two-tranche placement and A$90m through a data centre loan note. Keppel DC REIT, on the other hand, will reinvest A$90m of the sale proceeds into the Macquarie loan note, known as the Australia Data Centre note, ensuring continued exposure to the Australian data centre market with a regular income stream for 8.5 years.
According to Loh Hwee Long, CEO of Keppel DC REIT Management, the divestment of the Intellicentre Campus allowed them to realize value at a significant premium. The sale represents a strategic move for both companies in optimizing their real estate assets while ensuring continued growth and stability in the digital infrastructure market.