Mapletree Industrial Trust Sells 22 US Data
Singapore's Mapletree Industrial Trust is marketing a 22-property US data centre portfolio, aiming to raise up to S$600 million.
Mapletree Industrial Trust (MIT) is selling 22 data centres across the United States. The Singapore-listed REIT aims to generate between S$500 million and S$600 million ($394 million to $472 million) from the North American divestment effort.
According to exclusive advisor JLL, the portfolio spans 15 states and over 3.1 million square feet. The properties have a weighted average lease term of 6.8 years. Most are leased to co-location providers under triple-net arrangements.
JLL stated that while the properties are being offered as a portfolio, the owner is open to selling assets individually or in smaller groups to multiple buyers. The sales campaign precedes a leadership change at MIT's manager, which is controlled by Temasek-owned Mapletree Investments.
CEO Lily Ler is scheduled to step down on 1 October. Anand Tze Ming Chandran, Mapletree's Asia Pacific data centre head, is set to take over, pending regulatory approval.
Portfolio Origins and Value
The 22 assets had an aggregate appraised value of $1.24 billion as of March, according to a Mingtiandi tally of the trust's annual report. Based on MIT's proportionate ownership, the value was $1.07 billion. The largest properties are 180 Peachtree Street and 250 Williams Street, both in Atlanta, valued at $268 million and $217 million respectively. No guide price has been disclosed for the sales campaign.
The portfolio was assembled through three major acquisitions. The table below details the origins of the properties now for sale.
| Acquisition Source | Year | Original Deal Size | Number of Properties in Current Sale | Notes |
|---|---|---|---|---|
| Sila Realty Trust | 2021 | $1.32 billion | 16 | Part of a 29-property acquisition. |
| Digital Realty | 2019 | $1.37 billion | 4 | Held in a 50:50 joint venture with Mapletree. |
| Carter Validus | 2017 | $750 million | 2 | MIT took full ownership in 2020. |
Strategic Divestment Rationale
MIT announced the divestment programme in April. The goal is to shed underperforming or non-core North American facilities. The manager remains positive on the region but plans to recycle the proceeds.
Funds will be redirected into data centres backed by long-term leases to cloud, hyperscale and co-location operators. The target markets are core locations in Asia and Europe. Proceeds can also be used to reduce debt while awaiting new investment opportunities.
Responding to unitholder questions in July, the manager explained the rationale. Enterprise tenants had vacated some facilities as they consolidated their businesses. Certain properties were not efficiently configured for full data centre use.
The trust has made smaller US disposals in recent years. These include a $10 million Michigan facility sale in 2022 and the $11.8 million divestment of 2775 Northwoods Parkway in Georgia last year. In June, MIT sold 2000 Kubach Road in Philadelphia for $14.5 million, a 4.3 percent premium to its appraised value.
Leadership Transition
MIT's manager announced last week that CEO Lily Ler would relinquish her roles. She will become group chief financial officer of sponsor Mapletree. Ler became CEO in July 2024 after serving as the manager's CFO since November 2011.
Her successor, Anand Tze Ming Chandran, brings over 16 years of experience in corporate finance and digital infrastructure. Before joining Mapletree in February as its Asia Pacific data centre head, he was CFO of Robert Kuok's K2 Strategic digital infrastructure platform. He holds economics degrees from the London School of Economics and the University of Oxford.
