Asia Pacific Data Centres takes NextDC properties off the market

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Asia Pacific Data Centres takes NextDC properties off the market

Asia Pacific Data Centres (APDC) has taken NextDC’s S1, M1 and P1 data centres off the market and will instead focus on developing and operating data centres.

This comes after disputes between both companies dating back from May last year, with APDC wanting to sell off the properties and NextDC's lack of confidence in APDC's management.

“APDC has now formally withdrawn the properties from the market and will now be pursuing the growth strategies outlined in the recent investor updates,” APDC said in a statement.

“APDC looks forward to a positive working relationship with NextDC.”

APDC sued its sole tenant in April for allegedly breaching its leases by not allowing an independent property valuer from Bankwest to inspect the sites.

NextDC eventually allowed access to APDC valuers in 14 August, while the case was still pending, to value the properties in line with the Corporations Act and for mortgage security purposes, with inspections held on 15, 17 and 20 August.

Further to the out-of-court agreements made between the two parties, the NSW Supreme Court dismissed the case, preventing APDC from amending their property leases to allow for further access rights.

“APDC may from time to time and as reasonably required, continue to seek access to the properties in accordance with the leases to conduct its business in the best interests of security holders,” APDC said of the agreements made with NextDC.

“NextDC acknowledged it is required to act in good faith in considering whether and when it will permit access to the properties on a case-to-case basis.”

Wind-up case

A separate court ruling was also made in a case concerning NextDC's attempt to wind up APDC, in which it was handed down that APDC majority owner 360 Capital Group would be allowed vote against the proposal.

NextDC has been trying to wind up the property trust over concerns that 360 Capital does not have the strategic clarity required to manage the properties and for failing to sell the properties after eight months. The wind-up motion will be tested at a mid-September meeting. 

APDC was founded in 2013 by NextDC and listed on the Australian Securities Exchange as a way to generate capital recycling. The three data centres in Sydney, Melbourne and Perth are its sole assets.

But the colocation provider has been engaged in a bidding war with 360 Capital over ownership of the trust since May last year when the latter acquired a 19.8 percent stake in APDC. 360 Capital now owns a controlling 67.3 percent stake, with NextDC owning 29.2 percent.

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