Digital Realty Completes Sale Of 11 Data Centers In Europe To Ascendas Reit For $680 Million

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Mar 17, 2021, 16:05 ET

AUSTIN, Texas, March 17, 2021 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today it has completed the sale of a portfolio of 11 data centers in Europe (four in the UK, three in the Netherlands, three in France and one in Switzerland) to Ascendas Reit, a CapitaLand sponsored REIT. The consideration for the four data centers in the UK was £250.25 million and the consideration for the seven data centers on the continent was €276.85 million, for a total of approximately $680 million. The portfolio is expected to generate 2021 net operating income of approximately $43.5 million.

"This transaction represents an important step towards our goal of self-funding our growth and diversifying our sources of equity capital while shrinking our asset base and setting the stage for accelerating growth as the proceeds are redeployed into accretive investment opportunities," said Digital Realty Chief Investment Officer Greg Wright. "These 11 legacy assets are almost fully leased, and this portfolio sale enables us to harvest value from stabilized properties and reinvest the proceeds to fund the continued expansion of PlatformDIGITAL® in support of our customers' needs around the world."

Digital Realty expects proceeds from the transaction will initially be used to pay down debt and will ultimately be used to fund future investment activity.

CBRE served as advisor to Digital Realty and White & Case served as Digital Realty's legal advisor on the transaction.

About Digital Realty
Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture (PDx™) solution methodology for scaling digital business and efficiently managing data gravity challenges. Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with more than 290 facilities in 49 metros across 24 countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter.

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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 transaction with Ascendas REIT and our capital recycling 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.

SOURCE Digital Realty