NextDC Ltd. is "resolute" that the governance practices of Asia Pacific Data Centre are not sound, a claim it has made since late 2017 and which it is now reiterating due to the Australian Securities and Investments Commission's recent inquiry on APDC.
The inquiry is related to the APDC's board decision to increase the fair value of its three-asset portfolio by A$67.2 million to A$280 million in its Dec. 31, 2017, audited accounts. APDC has been trying to sell the portfolio since late December 2017, which was first priced at A$300 million, before being reduced to A$280 million and finally to the current A$265 million. The Australian data center owner has yet to successfully sell the properties in Sydney, Melbourne and Perth, which are all leased to NextDC.
Accordingly, NextDC said it will proceed with its proposal to wind up the trust and the related court proceedings against its landlord.
In addition, NextDC said the inquiry also caused it to give in to APDC's request to access its data centers for independent valuation. APDC appointed independent valuers to comply with regulatory obligations and to handle any further inquiries from the commission.