NEXTDC OFFLOADS PROPERTY ASSETS TO ALLY

NEXTDC OFFLOADS PROPERTY ASSETS TO ALLY

NEXT DC (NXD) has sold its property assets to newly-listed company Asia Pacific Data Group (APDC) as part of a capital recycling scheme.

Founder and director of Next DC, Bevan Slattery (pictured), divested part of his stake in the company to invest heavily in APDC and the two companies have a three year alliance, which gives APDC has the first right of refusal for any new data centre property developments undertaken by NXD.

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.

The Company fully funded APDC’s establishment and the costs of the IPO amounting to approximately $5.8 million.

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.

APDC will hold a portfolio of property assets valued independently at $138.8 million.

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
2013.

The money will be used to further expand NXD’s data centre business.

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