MacTel unveils leaseback plan for Intellicentre 2 data centre

Company will become lease back Sydney facility as tenant of Keppel

Macquarie Telecom (ASX: MAQ) has entered a sale and leaseback agreement with data centre company Keppel for the land and shell of the Intellicentre 2 data centre in Sydney for $43.3 million.

Macquarie Telecom will retain the data centre mechanical and electrical plant plus fixtures and fittings.

The company plans to enter into a 20-year triple net lease agreement with Keppel with the option of renewing it for another 10 years.

“When we purchased the land and the original building in 2011, we did so because we had found an ideal location to build a data centre,” said Macquarie Telecom CEO David Tudehope.

“Having completed the construction and having now operated the data centre for the past two and a half years we believe that it is appropriate to release the capital from the land and building. We are pleased to have Keppel as our landlord and look forward to our future relationship with them.”

Once the data centre sale is complete, Macquarie Telecom will move into a cash position of approximately $20 million.

Earnings before interest, depreciation and amortisation (EBITDA) is expected to grow from $11.8 million in the first half of 2015 to between $12.2 million and $14.2 million in the second half of 2012 resulting in a full year EBITA of $24 million.

Follow Hamish Barwick on Twitter: @HamishBarwick

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