Mapletree Industrial Trust divests Philadelphia Data Centre for US$14.5 million
The manager says it is the most ‘prudent’ action to optimise capital allocation and portfolio performance
[SINGAPORE] The manager of Mapletree Industrial Trust (MIT) on Monday (May 25) announced the sale of Philadelphia Data Centre for US$14.5 million – a deal entered into with DBS Trustee, as trustee of MIT, and a non-interested third-party purchaser.
This comes on the back of “limited” leasing interest in the property in the current environment, since its lease expired on Dec 31, 2024, noted the trust.
The manager said divestment is the most “prudent” course of action to optimise capital allocation and portfolio performance. Repositioning or redeveloping the property presents challenges including extended lead times to secure higher power capacity, on top of construction and execution risks.
The price for the property represents a 4.3 per cent premium above the independent valuation of US$13.9 million as at Mar 31, noted a bourse filing.
The building is located at 2000 Kubach Road, Philadelphia, Pennsylvania, and has two storeys with a net lettable area of about 124,190 square feet (sq ft). It sits on freehold land site of about 1.1 million sq ft.
Lily Ler, chief executive officer of the manager, said the sale is part of the trust’s broader strategy to “rebalance (its) portfolio”. “Redeploying capital into markets and assets with sustainable growth potential will strengthen MIT’s portfolio and deliver sustainable returns to unitholders,” she added.
The deal is expected to be completed by the third quarter of 2026.
Units of MIT ended Monday 0.5 per cent or S$0.01 higher at S$1.95 before the news.
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