Suncorp sells down Polaris data centre share

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Suncorp sells down Polaris data centre share

Springfield Land Corp becomes sole owner.

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.

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