The Directors of NEXTDC Limited (ASX:NXT) (“the Company” or “NEXTDC”) are pleased to advise that the Company has now entered into a sale-and-leaseback agreement for its Brisbane data centre property.

Earlier during 2011 NEXTDC announced a capital recycling program aimed at unlocking the growing value of its property assets and re-investing the proceeds in higher yield data centre infrastructure assets through sale-and-leaseback arrangements.

Under the Brisbane sale-and-leaseback arrangement, the Company has secured a triple net lease agreement for an initial term of 20 years with four additional 5 year options in Brisbane.

NEXTDC CEO Bevan Slattery advised that settlement of the Brisbane property transaction is expected to take place around 20 January 2012, delivering approximately $11.27 million (excluding GST) in sale proceeds.

“We are delighted to finalise our first sale-and-leaseback arrangement in Brisbane on attractive terms for the Company, in what is currently a very challenging property market.”

“This outcome is a testament to our strong business model supported by our growing pipeline of customers,” Mr Slattery said.

“Recycling our capital in this manner will help enhance our return on capital and provide additional flexibility as NEXTDC pursues various growth opportunities across Australia.”

The Company will update shareholders on its ongoing capital recycling program initiatives in the new year.