MIAMI-In a move to reinforce its role as a developer of Internet infrastructure, Terremark Worldwide Inc. is selling its telecommunications-hotel business to a group of senior managers for an undisclosed price.
The Miami company announced Tuesday it entered into a binding contract to sell Telecom Routing Exchange Developers Inc., an operating subsidiary, as part of a strategic plan to transform the parent company from a full-service real estate company into a developer of Internet infrastructure and provider of Internet-managed services.
While no one connected to the deal would talk about contract details, Terremark disclosed it agreed to sell all the assets of Telecom Routing, also known as T-Rex, to Thomas M. Mulroy, Telecom Routing's president and chief executive officer, and Clifford J. Preminger. However, the deal does not include Terremark's interest in the 700,000-square-foot Technology Center of the Americas–home to NAP of the Americas, a network-access point Internet switching system.
“The agreement between Terremark and T-Rex management is excellent for all parties involved,” Manuel D. Medina, Terremark chairman and CEO, says in a prepared statement. “It is a major step in Terremark's plan to exit from ancillary business activities, and it allows (Mulroy and Preminger) to focus all of their attention to pursuing the business they founded, the development of high end, T-Rex brand telcom hotels.”
As part of the deal, Mulroy and Preminger gain control of several properties, including a 1.8 million-SF telecom hotel in Boca Raton, FL a 274,000-SF facility in Cleveland and a 127,000-SF facility in Hartford, CT. These facilities contain equipment that expedites the switching of Internet traffic.
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