MIT sells Philadelphia data centre above valuation for $18.5m

The sale forms part of its portfolio rebalancing strategy.

Mapletree Industrial Trust (MIT) will sell its data centre in Pennsylvania, USA for $18.51m (US$14.5m), 4.3% above its independent valuation, according to its manager Mapletree Industrial Trust Management Ltd.

The property in the city of Philadelphia will be sold to a non-related third-party buyer under an agreement signed on 22 May. Completion is expected in the third quarter of 2026.

The price compares with an independent valuation of $17.75m (US$13.9m) as at 31 March, carried out by Cushman & Wakefield for the trustee.

The two-storey data centre has a net lettable area of about 124,190 square feet (sq ft) and sits on a freehold site of about 1.12 million sq ft.

The manager said leasing interest has been limited since the lease expired on 31 December 2024.

It added that redevelopment would require longer timelines to secure higher power capacity, as well as construction and execution risks.

Net proceeds may be used to repay debt and/or fund working capital.

MIT reported in late April, lower full-year distributions, with distribution per unit falling 6.3% to 12.71 cents in FY25/26 as revenue declined due to portfolio divestments and lease non-renewals. Gross revenue declined 5.5% to $673.0m.

Ler Lily, CEO of the manager, said the sale is part of efforts to rebalance the portfolio.

($1.28 = US$1)