Ascendas REIT has announced its long-awaited data centre transaction. The REIT had already carried out an equity fundraising exercise comprising a placement to raise $800 million and a preferential offering to raise $400 million that was completed on Dec 9, 2020. At the time of the announcement, Ascendas REIT’s manager had stated that $614 million would be earmarked for a data centre portfolio in Europe.

On March 17, Ascendas REIT’s manager finally announced details of the acquisition. As it turns out, the accretion from the fundraising exercise and the acquisitions in San Francisco, Sydney, Brisbane and more recently the data centres in London, Paris, Amsterdam and Switzerland is 2.4% according to William Tay, CEO of Ascendas REIT’s manager. This is at the upper end of the 2%–2.5% range accretion range indicated in a Nov 10, 2020 announcement.

In total, since the $1.2 billion in equity fundraising last year, and including the data centres, Ascendas REIT has acquired more than $2 billion in assets. These comprise two tech buildings in San Francisco for $768 million, a suburban tech office building in Macquarie Park of $284 million and a new logistics property, to be developed in Brisbane for $69.1 million. The cost of the data centre portfolio comprising 11 properties is $904.6 million, and $960 including expenses. Three properties are in London, one in Manchester, three in Paris, three in Amsterdam and one in Geneva. Digital Realty Trust is the vendor.

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