A NON-CORE, MIXED-USE 370,000SQF PROPERTY
Cloud- and carrier-neutral data center provider Digital Realty, has today announced the signing of a definitive agreement to sell one of its data center property in a transaction that values the asset at approximately $205 million.
According to Digital Realty, it originally acquired the 370,000 square foot facility in 2004, prior to the company’s IPO. However, the facility has been operated as a non-core, mixed-use data center property over time. Currently, the majority of the rental revenue is derived from a Tier III Powered Base Building data center, while a portion of the property is leased to commercial and retail tenants on a long-term basis.
“This disposition opportunistically recycles an operationally mature asset to fund strategic investments aimed at enhancing our longer-term growth profile. Since 2018, Digital Realty has sold approximately $4 billion of assets and redeployed proceeds into highly connected facilities around the world, providing our customers with a global, full spectrum data center solution,” said Greg Wright, Chief Investment Officer of Digital Realty.
As announced, the transaction is expected to close in the third quarter of 2022 and is subject to customary closing conditions. Furthermore, Digital Realty plans to use proceeds from the transaction to initially pay down debt and thereafter, used to fund future investment activity.
This sales offering is coming in just a week after Digital Realty announced the completion of its agreement to acquire a majority interest in Teraco, a carrier-neutral data center and interconnection services provider in South Africa. Valued at $3.5 billion, the newly completed transaction transfers the ownership stake of Teraco from a consortium of investors, including Berkshire Partners and Permira, to Digital Realty.
Digital Realty also recently announced a new partnership with Oracle which will enable customers located in Interxion’s Paris data center campus to gain direct access to Oracle Cloud Infrastructure (OCI) through the new Oracle Cloud Paris region.