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Digital Realty Prices Offering; $233M Expected

SAN FRANCISCO-Proceeds from the sale of half of the shares will be used to pay for an equal number of limited partner units delivered by Global Innovation Partners for redemption. The remaining net proceeds in a round-about way to fund acquisitions and redevelopments.

By Brian K. Miller | Updated on September 29, 2006

SAN FRANCISCO-Digital Realty Trust Inc. has priced its eight-million-share offering at $30.50 apiece. The owner and manager of 10.3 million sf of data center and Internet gateway properties expects net proceeds of $232.7 million, more if underwriters exercise overallotment options for an additional 1.2 million shares.

Proceeds from the sale of half of the shares will be used to pay for an equal number of limited partner units delivered by Global Innovation Partners for redemption. The remaining net proceeds will be used to reduce borrowings under the company’s unsecured credit facility, debt the company intends to build back up to fund acquisitions and redevelopments.

“The company is actively pursuing multiple opportunities for potential acquisitions, with due diligence and negotiations at different stages of advancement,” company executives said in a prepared statement when the offering was originally announced.

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