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The Directors of NEXTDC Limited (ASX:NXT) ("the Company" or "NEXTDC") are pleased to advise that the Company has entered into a conditional agreement to acquire vacant land in Perth upon which it intends to construct a purpose-built data centre facility.
The agreement is subject to NEXTDC completing a satisfactory due diligence process which, if satisfied, will result in completion of the acquisition in mid July 2011.
NEXTDC CEO Bevan Slattery said that the site is located approximately 11 kilometres north of Perth’s CBD and is close to a major electricity substation as well as significant telecommunications and public infrastructure and provides an ideal location for Perth’s newest purpose-built and energy efficient data centre facility.
“This expansion is driven by anticipated customer demand for a carrier and systems integrator neutral data centre in Western Australia. Customers want flexibility and NEXTDC is going to offer that nationally”, Mr Slattery said.
"Perth is a strategic location for NEXTDC and after a comprehensive evaluation of a number of alternative sites in Perth, we have selected this site due to its location and access to significant power and other infrastructure that we trust will be validated through the formal due diligence process to be conducted over the next two months," he said.
Subject to final design, the site is expected to accommodate a facility of approximately 3,000m² of high density technical space together with ancillary office and plant space. The facility is expected to be live around the middle of 2012, subject to relevant approvals.
As announced yesterday, NEXTDC has successfully completed its Share Purchase Plan (SPP) offer raising approximately $15.3 million.1 Following a conditional placement of $16.8 million2 next week, the Company will have over $100 million in equity and approximately $75 million cash at bank, providing significant funding capacity to address increasing customer demand for data centre and related services across Australia. The land acquisition in Perth will be funded through the incremental proceeds of the successful SPP (i.e. those proceeds above the announced target of $5 million).
1 Final proceeds raised from the SPP are subject to cheque clearance.
2 Conditional Placement is subject to shareholder approval at a general meeting called for 27 April 2011.
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