Story image

Tenant becomes landlord with NextDC taking over buildings from APDC

08 Oct 2018

It has involved a long feud and months of to and fro, but NextDC is set to take over the properties housing its data centres in Sydney, Melbourne, and Perth.

As the sole tenant of the three buildings, NextDC was presented the opportunity – and the price tag of around AU$300 million – to purchase back Asia Pacific Data Centres (APDC) and consequently the ownership of the buildings from 360 Capital, which had won majority ownership of APDC in 2017.

This is the very portfolio that NextDC sold in 2012 for AU$207 million. The company declined the offer, quoting it to be of “unjustifiable value”.

When 360 Capital announced in March this year it had found an undisclosed buyer willing to impart $280 million, NextDC knocked back the proposal with its pre-emptive right of refusal.

NextDC then rejected APDC’s third offer one month later for $265 million.

Now finally, 360 Capital has indicated it is set to accept NextDC’s $2 per share cash offer plus a 2¢ special distribution. 360 Capital has a 67.31 per cent of APDC with the remaining register including minority investors at 3.49 per cent and NextDC with 29.2 per cent.

NextDC revealed in its financial findings that it expects the share buyback to reach $163 million, with the addition of restructuring costs and restoration of APDC’s debt to bring the total to $200 million.

“Completing this acquisition is in line with our longer-term strategy to own more of our data centre properties,” NextDC chief executive Craig Scroggie said.

“This will provide the company greater flexibility in its capital structure as the company continues to build out its significant pipeline of data centre developments.”

According to various sources, the two had been ensconced in an ongoing feud surrounding ongoing access rights at the three facilities, so hopefully this should put that to bed.

NextDC expects the investment the pay for itself over time with savings of up around $14 million per year before interest.

Veeam joins the ranks of $1bil-revenue software companies
It’s also marked a milestone of 350,000 customers and outlined how it will begin the next stage of its growth.
Veeam enables secondary storage solutions with technology partner program
Veeam has worked with its strategic technology alliance partners to provide flexible deployment options for customers that have continually led to tighter levels of integration.
Veeam Availability Orchestrator update aims to democratise DR
The ability to automatically test, document and reliably recover entire sites, as well as individual workloads from backups in a completely orchestrated way lowers the total cost of ownership (TCO) of DR.
Why flash should be considered the storage king
Not only is flash storage being used for recovery, it has found a role in R&D environments and in the cloud with big players including AWS, Azure and Google opting for block flash storage options.
NVIDIA's data center business slumps 10% in one year
The company recently released its Q1 financial results for fiscal 2020, which puts the company’s revenue at US$2.22 billion – a slight raise from $2.21 billion in the previous quarter.
Limelight Networks celebrates 100th point-of-presence launch
The company has increased its global network capacity by 40% in just five months, bringing its total egress capacity to 42Tbps.
Dell EMC launches interactive AI Experience Zones
The AI Experience Zones are designed to educate visitors about how to start, identify, and implement an AI project.
Salesforce continues to stumble after critical outage
“To all of our Salesforce customers, please be aware that we are experiencing a major issue with our service and apologise for the impact it is having on you."