Ascendas Real Estate Investment Trust (SGX:A17U) entered into a sale and purchase agreement to acquire a Portfolio of 11 Data Centres in Europe from Digital Realty Trust, Inc. (NYSE:DLR) for approximately SGD 900 million on March 17, 2021. The consideration comprises of approximately £250.25 million (SGD 467.72 million) for the Data Centres located in the UK and approximately €276.85 million (SGD 443.05 million) for the other Data Centres located in the Netherlands, France and Switzerland and is subject to a completion working capital adjustment. Ascendas is expected to incur an estimated transaction cost of SGD 55.4 million, which includes stamp duty, professional advisory fees, and acquisition fees payable to the manager in cash. A European DC team will oversee operations, manage customer relationships, and grow the portfolio. To ensure a smooth transition, Digital Realty is providing 1-year of property and facilities management services for the 11 Data Centres post acquisition. Ascendas will appoint an External Property Manager and Facility Manager to take over from Digital Realty after the 1-year transition service ends. The total acquisition cost will be funded by SGD 612.5 million of gross proceeds from the equity fund raising announced on November 10, 2020 and SGD 347.5 million through debt financing and/or internal cash resources.

The transaction is expected to be completed on March 17, 2021. Digital Realty expects proceeds from the transaction will initially be used to pay down debt and will ultimately be used to fund future investment activity. The transaction is expected to be accretive to Distribution per unit (DPU). Net property income yield for the first year is approximately 6.0% and 5.7% pre-transaction costs and post-transaction costs respectively. The pro forma impact on the DPU for the financial year commencing on January 1, 2020 and ended December 31, 2020 is expected to be an improvement of SGD 0.189 assuming the acquisition was completed on January 1, 2020. Newmark Knight Frank Valuation & Advisory, LLC acted as independent property valuer to Ascendas. CBRE Limited served as advisor and White & Case LLP acted as a legal advisor to Digital Realty Trust, Inc. for the transaction.

Ascendas Real Estate Investment Trust (SGX:A17U) completed the acquisition of a Portfolio of 11 Data Centres in Europe from Digital Realty Trust, Inc. (NYSE:DLR) on March 17, 2021. Dan Norris, Sian Owles, Anita de Jong, Jan de Snaijer, Victor de Vlaam, Leonie Huisman, Carola Houpst, Imane Azdad, Georgi Boyadzhiev, Jacob Hoogslag Liza Krijgsheld, Joris de Leeuw, Marieke Plaisier, Saad Amjad, Aline Doussin, Nicola Fulford, Mark Jones, Stefan Martin, Jamie Rogers, Andrew Taylor, Elliot Weston Tim Reid, Adam Balfour Jim Davis, Clare Douglas, Sian Howes, Christopher Hyde, Edward Newport, Christopher Peacock, Emily Sharkey, David Wood, Joe Barnes, Imogen Brooks, Emma Hughes, Iris Karaman, Sophie Marson, Linda Ruan, David Sheridan, Ellie Thwaites, Lauren Bailey, Kate Gardner, Alice Russen, Bea Watts, Bradley Weller, Alexander Koch, Emmanuel Lamaud, Laurence Heinen, Ludovic Geneston, Michael Levy, Michel Quéré, Alice Houdart, Astrid Layrisse, Charlotte Le Roux, Margot Derumaux, Gabriel Lecordier, Maryll Pizzetta, Maximilien Schmitt, Florian Tranchecoste and Marie-Pascale Bertin of Hogan Lovells acted as legal advisor for Ascendas Real.