TO CONTINUE LANDMARK’S CURRENT ACQUISITION STRATEGY
Digital infrastructure investment firm Digital Colony Management LLC, has just announced that its affiliates have entered into a definitive agreement to acquire Landmark Dividend LLC, a digital infrastructure investment and development company.
With plans to close the acquisition of Landmark Dividend LLC within several weeks, Digital Colony has informed the General Partner of Landmark Infrastructure Partners LP about its intention to acquire substantially all of its assets at approximately $972 million.
“The acquisition of LD is our first strategic step to secure a stronger future for LD and its various affiliated entities, including LMRK. We look forward to working with the LD team to advance our shared mission of acquiring and managing critical digital infrastructure assets that deliver quick, reliable and responsive service for customers,” said Steven M. Sonnenstein, Senior Managing Director at Digital Colony.
According to Digital Colony, when the acquisition of Landmark Dividend LLC is completed, it intends to continue Landmark’s current strategy of not pursuing additional drop-down acquisitions to Landmark Infrastructure Partners LP and would evaluate Landmark Infrastructure Partners LP’s distribution policy in order to maintain reserves sufficient to provide for the proper conduct of business.
“As a recognized leader in the digital infrastructure space with a proven track record, we believe the Digital Colony team’s expertise is crucial to advancing our strategy in today’s rapidly evolving market. We are confident this acquisition by Digital Colony will position us to accelerate our pursuit of strategic consolidation in our fragmented industry and drive growth over the long-term,” said Tim Brazy, Chief Executive Officer at Landmark Dividend LLC.
For this transaction, TAP Advisors is serving as financial advisor to Digital Colony, and Simpson Thacher & Bartlett LLP is serving as legal advisor to Digital Colony. RBC Capital Markets, LLC is serving as exclusive financial advisor to Landmark, Latham & Watkins LLP is serving as legal advisor to Landmark, and Regions Securities LLC, as Landmark’s existing financing bank, is supporting the transaction.
About a year ago, Landmark Dividend acquired a data center campus in Phoenix, Arizona, which was owned by PayPal. The facility is an 184,000 square foot campus with three data center buildings and an office area, featuring about 16MW of total load capacity.
Landmark’s latest data center acquisition was announced about 2 months ago, acquiring a data center in the greater Chicago area from Chirisa Investments. The facility covers more than 105,000 square feet, including over 30,000 square feet of white space, providing about 2.4 MW of critical load capacity