Suncorp sells down Polaris data centre share

Suncorp has sold down its 50 percent share in the Polaris data centre, making Springfield Land Corporation the sole owner of the three-year-old facility.

The bank, also a tenant, was an early joint venture partner in funding the $212 million facility which also counts NBN Co, NEC and Queensland Gas as tenants.

Springfield Land Corporation, which owns the Greater Springfield project where Polaris resides, purchased Suncorp's share at a cost of $110.5 million; approximately the same investment the bank made five years ago.

Suncorp bank executive general manager John Debenham said in a statement that "the time is right to divest the holding".

"We've been very happy with the investment," he said.

The bank marked Polaris as a "non-strategic property asset" in its half-yearly financial results delivered last week but indicated it had made $34.5 million in pre-tax profit on the sale of its share in the facility.

Suncorp did not provide iTnews with a post-tax assessment of the investment.

A spokeswoman for the bank told iTnews the divestment would mark no changes in Suncorp's tenancy at the centre.

Suncorp still retains approximately a third of the 6999 square-metre facility space available to tenancy.

"It makes sound financial sense for Springfield Land Corporation to acquire Suncorp's share of the facility," Springfield Land Corporation chairman Maha Sinnathamby said.

A similar facility is being built in Victoria at a cost of $200 million and expected to be complete at the end of the year.

The Queensland facility suffered a 24-minute outage during March last year, an issue Springfield blamed on an un-named equipment vendor at the time.