NTT DC REIT has successfully renewed the SG1 master services agreement dated March 31 between NTT Global Data Centers SG1 LLP, a wholly-owned subsidiary of NTT DC REIT, and NTT Singapore, an indirect wholly-owned subsidiary of NTT. SG1 is located on 51 Serangoon North Avenue 4.
The renewed SG1 Master Services Agreement delivers a positive rental reversion of about 23% to $474 per kilowatt, compared with the $385 per kilowatt committed under the previous one-year lease.
The new lease incorporates fixed 5% annual rent escalations, providing contractual organic income growth over the three-year lease term commencing on April 1.
“We are pleased to have achieved stronger than expected rental reversion, which would be accretive to NTT DC REIT’s income," says Yutaka Torigoe, CEO of the manager.
"Transitioning to a longer-term lease at higher rent further strengthens the visibility and stability of our cash flows.
"Looking ahead, we remain focused on delivering resilient performance while leveraging the strong pipeline of opportunities within our Sponsor and the wider NTT group to drive sustainable, long‑term value creation,” he adds.
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Following the renewal, NTT Singapore will continue to anchor SG1 with 2.7 MW of contracted capacity, which accounts for 31% of SG1’s capacity.
NTT DC REIT units closed at 92 US cents, up 0.55%.
