Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, has sold a 29-property data center portfolio to Mapletree Industrial Trust, a real estate investment trust listed on the Singapore Exchange, for $1.32 billion.
The original total acquisition cost of the portfolio, including capital improvements on the properties, was approximately $965.2 million.
“The sale of the data center portfolio represents a substantial gain for the company and firmly positions Sila Realty Trust Inc. as a pure-play healthcare REIT,” said Michael Seton, chief executive officer and president.
The REIT’s board also approved an updated estimated net asset value of $9.95 per share for the company’s Class A, Class I, Class T, and Class T2 as of May 31, 2021. The previous NAV per share was $8.69 as of September 30, 2020.
The increased NAV was primarily attributed to the increase in the fair market value of the properties owned by the company. Cushman & Wakefield, an independent third-party valuation firm, assisted with the valuation process.
Sila’s board also declared a $1.75 per share special distribution for the company’s Class A, Class I, Class T, and Class T2 common stock.
The sale price of the data center transaction generated net proceeds of approximately $1.26 billion after transaction costs, loan payoff costs and other prorations. The company repaid approximately $854 million in debt at the time of closing.
The special distribution will be paid in cash around July 29, 2021, to stockholders of record at the close of business on July 26, 2021.
“By opportunistically taking advantage of a constructive data center market, we are pleased that we are able to distribute meaningful cash liquidity to our stockholders well in advance of the liquidity time frame set forth during our initial offering, while also reducing leverage to position the company for future growth as a pure-play healthcare REIT in the publicly traded markets,” added Seton.
Sila Realty Trust invests in what it deems as “high-quality healthcare properties leased to tenants capitalizing on critical and structural economic growth drivers.”
The REIT raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014. Its follow-on offering closed in November 2018 and raised $129.3 million, and as of May 31, 2021, it owned 124 healthcare properties.