Mapletree Redwood Data Centre Trust: Sila agrees to sell all its data centers to Mapletree for $1.3bn

May 20, 2021 | Posted by Abdul-Rahman Oladimeji

Sila Realty Trust announced that it has agreed to sell all its 29 data centers in the US to Mapletree Investment Trust for $1.3 billion. The 29 data centers are all the data centers in Sila’s portfolio which means upon completion; it will be an exit from the data center industry for Sila.

CEO and President of Sila, Michael Seton, was excited about the agreement, and he said it is a step in the company’s plan to pursue a strategy as a pure-play healthcare real estate investment trust. This is also not the first time Mapletree is buying data centers in the US. Mapletree previously purchased Bank of America’s Virginia data center and some of Digital Realty’s data centers.

The deal is expected to close in the third quarter of 2021 subject to certain closing conditions.

TAMPA, Fla.--(BUSINESS WIRE)-- Sila Realty Trust, Inc. (the “Company”) announced today that it has entered into a purchase and sale agreement with wholly-owned subsidiaries of Mapletree Industrial Trust, a real estate investment trust listed on the Singapore Exchange (“MIT”), for up to 29 data center properties (the “Properties”) owned by the Company for approximately $1,320,000,000 (the “Transaction”), subject to certain potential purchase price adjustments. The Properties constitute the entirety of the data center properties owned by the Company.

Michael A. Seton, Chief Executive Officer and President, stated, “We are pleased to enter into this agreement with MIT to sell our data center properties. This action marks another key step in Sila Realty Trust’s evolution to provide a clear path for the Company to pursue a strategy as a pure-play healthcare REIT. Upon closing this Transaction, we will continue to be focused on enhancing the value of our Company through internal and external growth opportunities which, we believe, will maximize optionality to achieve liquidity for our stockholders within the timeframe communicated during our offering.”

The Transaction is expected to be completed in one or more closings during the third quarter of 2021. The Transaction is subject to the completion of certain closing conditions, and it is possible that the timing of the closing(s) may be delayed or that the Transaction does not close.