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NextDC Buys Out Data Centre Landlord for $200 Million

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Data Centre player NextDC will buy the remaining 70.8 per cent of Asia Pacific Data Centres, after a year-long feud for the ownership of three APDC properties in Sydney, Melbourne and Perth.

NextDC is the sole tenant of the three facilities.

Majority owner of APDC, 360 Capital, accepted NextDC’s $2 per share cash offer plus a 2¢ special distribution. 360 Capital controls 67.31 per cent of APDC, the remaining register includes minority investors at 3.49 per cent and NextDC with 29.2 per cent.

Investment platform 360 Capital had won majority ownership in 2017 and had attempted to sell off the APDC portfolio for $280 million to an undisclosed buyer in March, with NextDC knocking back the proposal with its pre-emptive right of refusal.

NextDC had previously rejected APDC’s offer of $300 million for the portfolio on the grounds of “unjustifiable value”. The data centre operator then rejected APDC’s third offer for $265 million in April.

Related: NextDC to Build Australia’s Largest Data Centres

“Completing this acquisition is in line with our longer-term strategy to own more of our data centre properties,” NextDC chief executive Craig Scroggie said.

“This will provide the company greater flexibility in its capital structure as the company continues to build out its significant pipeline of data centre developments.”

The deal will likely end the dispute between the two, which revolved around “ongoing access rights” at the three centres.

NextDC now holds a 96.5 per cent interest in ADPC.

The acquisition of the centres will save the data centre operator $14 million annually.

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Article originally posted at: https://theurbandeveloper.com/articles/nextdc-buys-out-data-centre-landlord-for-200-million