Digital Realty Completes Acquisition of Eight Premium European Data centers
SAN FRANCISCO, July 5, 2016
Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today that it has completed the previously announced acquisition of a portfolio of eight high-quality, carrier-neutral data centers in Europe from Equinix in a transaction valued at approximately $874 million, or a multiple of approximately 13 times the anticipated full-year 2016 portfolio EBITDA. Final regulatory approval from the European Commission was received prior to closing.
“Digital Realty’s global platform is one of our key competitive advantages and this transaction significantly extends our footprint in the three most strategically important interconnection markets in Europe,” said A. William Stein, Digital Realty’s Chief Executive Officer. “We believe that Europe will remain a growing, high-demand region for data center solutions. This portfolio acquisition will further enable us to support the growth of our global customer base, nearly two-thirds of whom deploy data center requirements in multiple metropolitan areas across our portfolio.”
The eight-property portfolio – including five in London, two in Amsterdam and one in Frankfurt – comprises a total of approximately 213,000 net sellable square feet and 24.4 megawatts of IT load and serves a large base of over 650 clients. These clients are predominantly concentrated in the network, cloud and IT services, content and digital media and financial services verticals, and are expected to be highly complementary to Digital Realty’s target customer verticals.
The portfolio also provides substantial available capacity, with approximately 6.9 megawatts of fully-installed power and 62,700 net sellable square feet immediately available for lease. Entitled expansions in the London and Amsterdam facilities could add up to another 14.9 megawatts of power capacity and 88,900 net sellable square feet to support future growth.
Digital Realty also granted Equinix an option to acquire the company’s facility at 114 rue Ambroise Croizat in Paris. Equinix has elected to exercise its option to acquire the Paris property, and on July 2, 2016, Digital Realty entered into an agreement to sell the property to Equinix for €190 million (or approximately $211 million). The Paris property sale is subject to customary closing conditions, and is expected to close in the third quarter of 2016.
About Digital Realty
Digital Realty Trust, Inc. supports the data center and colocation strategies of firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty’s clients include global companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products.