CapitaLand Ascendas REIT Management has announced the completion of the acquisition of a high-specification Tier III colocation data centre from an unrelated global data centre operator.
The property is situated in Watford in North West London, UK. The purchase consideration for the acquisition after taking into account the agreed value of the property of £119.4 million is £125.1 million.
Mr William Tay, Chief Executive Officer and Executive Director, says, “As the demand for cloud and digital services continues to rise, we are capitalising on favourable market dynamics to significantly scale up our presence in the data centre sector. London ranks among the top three global data centre markets and is also Europe’s largest colocation data centre market. This Acquisition complements our data centres around London, deepening and boosting our data centre investments in the UK by 54% to S$569.8 million, as well as increasing our exposure in London to 96% of our investments in the UK. Given its strategic location and Tier III specifications, along with its robust tenancy, the property will serve as a strong catalyst in delivering additional value to the REIT.
“We expect our enlarged data centre portfolio valued at S$1.5 billion to contribute a continuous income stream towards our overall DPU growth.”
Rationale and merits of the acquisition
- Strategic FLAPD3 location in London, UK to capture growing demand for cloud and digital services
- Significantly expands CLAR’s data centre footprint in Europe
- Resilient income stream with investment grade tenants
- Distribution per Unit accretive acquisition