360 Capital Group said it will make a A$27.9 million profit from its investment in Asia Pacific Data Centre, or APDC, if the proposed sale of the Australian data center operator's entire portfolio pushes through.
The statement comes as APDC entered into a 21-day exclusive due diligence with a preferred third party for the sale of its data center portfolio for A$280 million, with APDC also noting its intention to wind up its business upon the sale's completion.
According to 360 Capital, its investment in APDC totals A$142.2 million and it owns a 67.3% stake in the data center operator, comprising 77.4 million securities priced at A$1.84 apiece on average. If the sale comes into fruition and APDC winds up, 360 Capital will make a 12-cent-per-security distribution to its security holders. The property investment and funds management company also noted that it will have a A$120 million in-excess cash if the sale proceeds and will be free of debt, enabling it to explore other real estate opportunities.
360 Capital said that its unaudited per-security net tangible assets for the half-year ending Dec. 31, 2017, will be about A$1.06, higher compared to the 95 cents per security recorded in the prior six months. Including the distributions that will be received from APDC's proposed entire asset divestment, plus the equity investment of A$122.2 million, 360 Capital expects to log roughly 60% internal rate of return on its equity investments in nine months.
Separately, NEXTDC Ltd. said it has yet to receive a valid notice about the right of first refusal offered by APDC regarding the sale of the portfolio to its sole tenant, adding that it will consider the terms and decide on its pre-emptive rights once it receives them. However, NEXTDC said it is not in a position to purchase APDC's portfolio at the A$280 million offer price based on the limited information provided by APDC on the sale's terms.
360 Capital, which offered a superior bid than NEXTDC Ltd.'s offer to buy APDC, is supporting the data center operator's proposed divestment of its entire portfolio.