AUSTIN,
Texas, July 17, 2023 /PRNewswire/ --
Digital Realty (NYSE: DLR), the largest global provider of
cloud- and carrier-neutral data center, colocation and
interconnection solutions, announced today it has partnered with GI
Partners to establish a joint venture for the sale of a 65%
interest in two stabilized hyperscale data center buildings and
their associated equipment in the Chicago metro area. Digital Realty will
receive approximately $743 million of
gross proceeds related to the joint venture and the associated
financing, and will maintain a 35% interest in the joint venture
while continuing to manage the day-to-day operations of the assets,
providing a seamless customer experience. Digital Realty has
also granted GI Partners an option to purchase an interest in the
third facility on the same hyperscale data center campus.
"With Digital Realty's unmatched global footprint and the
attractive fundamental outlook for the data center sector, we are
pleased with the strong institutional demand for our high-quality
facilities," said Digital Realty Chief Investment Officer
Greg Wright. "This transaction
further diversifies Digital Realty's sources of capital and
enhances our capital efficiency, in support of our strategic
priorities. We are pleased to partner with a data center
investor of GI Partners' caliber on this initial joint venture and
we look forward to the continued execution on our capital plan for
2023."
Digital Realty originally acquired the facilities in 2017
through its merger with DuPont Fabros. The two data centers
contributed to the joint venture contain approximately 67 megawatts
of IT capacity and are 90% occupied in aggregate, primarily by
investment grade customers.
Based on annualized in-place cash NOI at June 30, 2023 and the benefit of leases signed
but not yet commenced, the transaction values the two facilities at
approximately a 6.5% cap rate. Net proceeds will be used to
pay down debt and for general corporate purposes.
About Digital Realty
Digital Realty brings companies
and data together by delivering the full spectrum of data center,
colocation and interconnection solutions. PlatformDIGITAL®,
the company's global data center platform, provides customers with
a secure data "meeting place" and a proven Pervasive Datacenter
Architecture (PDx®) solution methodology for powering innovation
and efficiently managing Data Gravity challenges. Digital
Realty gives its customers access to the connected communities that
matter to them with a global data center footprint of 300+
facilities in 50+ metros across 27 countries on six
continents. To learn more about Digital Realty, please visit
digitalrealty.com or follow us on LinkedIn and
Twitter.
For Additional Information
Investor Relations
Jordan
Sadler / Jim Huseby
Digital Realty
+1 737 281 0101
InvestorRelations@digitalrealty.com
Media Contacts
Helen
Bleasdale
Digital Realty
+1 737 267 6822
hcbleasdale@digitalrealty.com
Safe Harbor Statement
This press release contains
forward-looking statements which are based on current expectations,
forecasts and assumptions that involve risks and uncertainties that
could cause actual outcomes and results to differ materially,
including statements related to the disposition, expected benefits,
use of proceeds and the company's strategy. For a list and
description of such risks and uncertainties, see the reports and
other filings by the company with the U.S. Securities and Exchange
Commission. The company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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SOURCE Digital Realty