Macquarie Technology Group Acquires Sydney Data Centers for A$174m, Bolstering Long-Term Control and Flexibility

Macquarie Technology Group, an Australian digital infrastructure company, has announced the acquisition of two data centers in Sydney’s north from Keppel DC REIT for A$174m (€120m). The purchase includes the Intellicentre Campus in Macquarie Park, consisting of Intellicentre 2 and Intellicentre 3 East assets. Keppel DC REIT sold the property at a 35.4% premium to its valuation as of December 31, 2023.

Macquarie Technology Group’s CEO, David Tudehope, expressed that acquiring the land and buildings at Macquarie Park provides long-term control of the campus, especially as they are expanding capacity by constructing IC3 SuperWest, a third building at the campus. The total acquisition cost of A$190m, including transaction costs and stamp duty, offers greater flexibility for future capital management and creates value over the long-term life of the assets.

To fund the acquisition, Macquarie Technology Group is raising A$100m through a two-tranche placement and a A$90m data centre loan note. Keppel DC REIT will reinvest A$90m of the sale proceeds into the Macquarie loan note, known as Australia Data Centre note. This allows the trust to retain exposure to the Australian data centre market and receive a regular income stream with CPI-linked annual escalation for 8.5 years.

Loh Hwee Long, CEO of Keppel DC REIT Management, emphasized that the divestment has realized value from their investment in Intellicentre Campus at a highly attractive premium. This strategic move showcases the evolving landscape of the digital infrastructure market and the potential for growth and collaboration within the industry.