Ascendas Funds Management (S) Limited, in its capacity as the manager of Ascendas Real Estate Investment Trust, has announced the Proposed Acquisition of a portfolio of data centres located across Europe. The portfolio comprises 11 data centres located across the United Kingdom, the Netherlands, France and Switzerland.
Mr William Tay, Executive Director and Chief Executive Officer of the Manager said, “This acquisition gives us a unique opportunity to own a portfolio of well-occupied data centres located across key markets in Europe. It complements our existing data centre portfolio in Singapore and will increase the sector’s contribution to S$1.5 billion or 10% of investment properties under management. We see good potential in the data centre business and will continue to source and make further acquisitions when the opportunities arise.”
Ascendas Reit, through its wholly owned subsidiaries, has entered into a sale and purchase agreement with the Vendor and is expected to complete the Proposed Acquisition today in UK time.
The total consideration of S$904.6 million is in line with the independent market valuations of the Target Properties, which amount to S$905.0 million[12].
Ascendas Reit is expected to incur an estimated transaction cost of S$55.4 million, which includes stamp duty, professional advisory fees, and acquisition fees payable to the Manager in cash (being 1% of the Total Consideration of S$904.6 million, which amounts to approximately S$9.0 million).
The total acquisition cost of S$960.0 million, will be financed with proceeds from the Equity Fund Raising[13] announced on 10 November 2020, debt financing and/or internal cash resources.
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