DALLAS—ASB Real Estate Investments announced a definitive agreement to sell Infomart Dallas, the 1.6 million-gross-square-foot data center and office complex, to Equinix Inc. for $800 million. The transaction consideration will consist of cash and debt securities paid out to ASB during a 36-month period following closing.
ASB agreed to execute the transaction on behalf of its Allegiance Fund, a $7.4 billion core real estate investment vehicle. The sale is targeted to close during the second quarter of 2018.
“ASB has benefited from significant value creation over the term of our investment, and we saw the opportunity to realize gains for our investors, while rebalancing our diversified real estate portfolio in line with allocation targets,” said Robert Bellinger, ASB Real Estate Investments' president and CEO. “The structured payout of Infomart Dallas allows for an orderly redeployment of capital, maintains a stake in data center investments for at least three years and aligns us with Equinix, the leading industry operator.”
An early institutional investor in data center properties, ASB purchased Infomart Dallas in 2005, expanding its capacity to 110 carriers with major tenants that include Equinix, Bank of America and Verizon.
“Later we added to the data center portfolio in three separate acquisitions—Infomart Silicon Valley located in San Jose in 2008, Infomart Portland, located in Hillsboro, OR, in 2011 and Infomart Ashburn, located in Sterling, VA, in 2014,” Bellinger tells GlobeSt.com. “In addition, in 2014, we merged the operator Fortune Data Centers into our data center business to form Infomart Data Centers, a wholly owned vertically integrated leasing, management and development operating business to manage all four data centers.”
ASB Real Estate Investments was advised by DH Capital, as its exclusive financial advisor, and DLA Piper LLP, as legal advisor on the transaction.
ASB Real Estate Investments, a division of ASB Capital Management LLC, is a US real estate investment management firm with $7.7 billion in gross assets under management for more than 340 institutional clients. Headquartered in Washington, DC, ASB invests in major urban markets, concentrating in office, multifamily, retail and industrial properties.
Equinix Inc. is a global interconnection and data center company.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
