Macquarie Technology Group acquires existing Macquarie Park data centre campus 

Macquarie Technology Group has entered into a binding agreement to acquire the existing Intellicentre 2 and Intellicentre 3 East land and buildings at 17-23 Talavera Rd, Macquarie Park for A$174 million from Keppel DC REIT.

Settlement of the purchase, which will be through a wholly owned subsidiary of Macquarie Data Centres Group, is expected to occur within 2H FY24.

The purchase price will be partially funded from a $A90 million loan note (‘Data Centre Note’) that will be issued to Keppel DC REIT. The Data Centre Note has an initial interest rate of 6.97%, if for an 8 year and 6-month term and is unsecured.

David Tudehope, Chief Executive Officer of Macquarie Technology Group said: “The acquisition of the land and buildings at Macquarie Park gives us long-term control of the campus at a time when we are making a significant investment in expanding capacity by building IC3 SuperWest. Ownership of the land and buildings will support our plans to accelerate growth in Macquarie Data Centres. Purchasing the land and buildings also delivers on the expectations of our customer base which values our Australian ownership, data security and our sovereign credentials.”

The move strategically positions Macquarie Data Centres to continue to capitalise on the fastgrowing cloud and Artificial Intelligence megatrends which are driving data centre demand. Long-term site ownership enhances Macquarie Data Centres’ ability to deliver scale that meets the needs of government, global hyperscale and wholesale customers.

The acquisition provides greater flexibility for Macquarie Technology Group’s future capital management and creates value over the long-term life of the asset and brings it in line with global peers. The acquisition strengthens the balance sheet, enhances the quality and longevity of the data centre asset whilst providing an opportunity for improved terms for senior debt upon refinancing.

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