Monday 23 May 2016 by William Arnold Company updates

NextDC confirms acquisition of two new sites in Brisbane and Melbourne

As noted in the February half year results,External link - opens in a new window NextDC highlighted its intention to develop its second data centres in Brisbane and Melbourne, adding up to 31MW of IT load capacity to its national network – driven by continued strong demand

nextdc

The company has now confirmed it is in agreements to purchase a Fortitude Valley, Brisbane site (B2) and a Tullamarine, Melbourne site (M2).

NextDC said it plans to invest a total of $160m across two facilities (B2 and M2) in the next 12 to 18 months.

Both projects are scheduled to complete in the second half of 2017. B2 will have an initial 1.5MW of IT load at launch with a target total capacity of approximately 6MW. M2 will initially offer 6MW and eventually grow to support up to 25MW of IT load.

The group remains well funded to execute its expansion post the November 2015 $100m Notes II offers as well as the $120m equity raise in 1H15.  At 31 Dec 15, NextDC was net cash positive with debts of $164m against $225m of cash, as well as access to an undrawn $50m overdraft. The group forecasts FY16 EBITDA of $25-28m.

The company announcements can be found on the company’s investor pageExternal link - opens in a new window.