NEXTDC OFFLOADS PROPERTY ASSETS TO ALLY
Written on the 10 January 2013
NEXT DC (NXD) has sold its property assets to newly-listed company Asia Pacific Data Group (APDC) as part of a capital recycling scheme.
NXD shareholders approved the sale of the company’s Melbourne, Sydney and Perth data centre properties to APDC at its AGM on December 20 and the company is the sole tenant of the properties owned by APDC.
NEXTDC CEO, Craig Scroggie, says the offer’s completion marks a key achievement for the Company.
“The successful completion of the APDC offer and long-term alliance arrangements provide future flexibility for NEXTDC to continue its plans for growth through capital recycling,” Scroggie says.
APDC’s initial public offering was staged in December and it listed on the ASX for the first time on Wednesday.
NEXTDC has taken a cash payment of $53.37 million, plus 26.45 million partly-paid stapled securities in APDC, for the sale of assets of $69.5 million. NXD’s holding in APDC represents 23% of the issued securities.
A further payment for the Sydney property of $45.5 million is expected in May, while another $23.8 million will come in November for the Perth site.
The company will contribute $10.3 million for the final instalment due on its securities in May
The money will be used to further expand NXD’s data centre business.