Canberra Data Centres celebrates multimillion-dollar acquisition

The champagne corks are popping at Canberra Data Centres this month after a multimillion-dollar acquisition of the IT leader.

The company that manages the federal government’s most secure data files has sold a 96 per cent stake to Australia’s Commonwealth Superannuation Corporation and New Zealand investment company Infratil, with the Kiwi player paying $392 million for its share.

The trans-Tasman pair are set to take control of Canberra Data Centre’s (CDC) four facilities in Fyshwick and Hume, while CDC founders Ken Lowe, Craig Sebbens and Greg Boorer will retain 4 per cent of the company, and remain as the management team.

Meanwhile, JLL had some celebrating of its own in relation to CDC, with a warehouse sale to the group two days before the acquisition was announced.

JLL’s Michael Heather and Aaron Green brokered the $4.05 million sale of the industrial site at 98 Sheppard St, Hume.

The 4,471 square-metre property, which was owned by Sandhurst Trustees, is leased to the Commonwealth of Australia with a 4½-year Weighted Average Lease Expiry (WALE).

Heather says he is unsure of the synergy of the two sales being just days apart but says the warehouse transaction is good news for Hume.

Heather said the sale demonstrates the desirability of this type of property with a AAA-rated federal government tenant in place.

“It was appealing to all parties, not just the buyers but all under bidders at the auction. They were all looking for a secure investment with cash flow underpinned by a Commonwealth of Australia lease covenant.”

Heather describes Hume as an improving industrial market.

“That has been backed by recent sales of unimproved land in the suburb. As more of that land supply is absorbed, it’s strengthening the overall market in Hume.”

Heather says Hume is still viewed as a very affordable suburb for large industrial users.

“Rents are still typically much lower than what you’d pay in Fyshwick which is a quasi retail.”