Asia Pacific Data Centres gets offer for $280M7

The ongoing battle for Asia Pacific Data Centre Group (ASX: AJD) looks likely to reaching a close with AJD finding a potential buyer for the portfolio. AJD announced it has entered a 21-day exclusive due diligence period to sell its portfolio of three data centres in Sydney, Melbourne and Perth for $280M to an overseas party. The indicative price represents a 5.0% yield and a premium of $67.2M to the last independent valuation. The tenant, NEXTDC Limited (ASX: NXT) has indicated that it would unlikely be exercising its first right of refusal to purchase the property at the same price. The potential buyer has not been identified, however if the sale proceeds, it would bring an end to the rival bidding by 360 Capital Group (ASX: TGP) which acquired 67.3% of AJD as part of its November takeover offer at $1.95, and NXT, which own 29.2% as part of its September takeover offer at $1.87 per unit. AJD has indicated the $280M offer would value its NTA at $2.20 per unit. AJD is trading at a discount at around $2.06, representing the uncertainty of the offer during the due diligence period, and Core Property expects that once a sale price is confirmed then AJD is likely to trade closer to the final sale price.

In the past week, a number of A-REITs reported including GPT, PLG, DXS, VCX, GMG, FET, CNI and CLW. GPT reported 12 month results to December 2017 and provided new guidance for FY18 for 3% growth; DXS increased its distribution guidance to 4.5% - 5.0% (previously 4.0% – 4.5%), whilst the remaining A-REITs maintained their guidance for FY18.

Reporting season continues this week with results from IDR, CQR, GDI, CRR, IOF, GOZ, SCG, WFD, ARF, CHC, VVR and GDF.