SAN FRANCISCO-Wholesale datacenter provider Digital Realty Trust Inc. has entered into a definitive asset purchase agreement to acquire a five-property data center portfolio located in California, Arizona and Virginia. The portfolio is referred to as the Rockwood Capital/365 Main Portfolio and comprises approximately 919,000 square feet.
All data centers in the Rockwood Capital/365 Main Portfolio were developed in 2000 or later. The portfolio consists of 365 Main St. in San Francisco, 2260 E. El Segundo Blvd. in El Segundo, CA, 720 2nd St. in Oakland, CA, 2121 S. Price Rd. in Chandler, AZ and 4030-4050 Lafayette Center Dr. in Chantilly, VA, from joint ventures that are majority-owned by affiliates of Rockwood Capital and managed by 365 Main Inc.
The purchase price for the Rockwood Capital/365 Main Portfolio, which includes approximately 250,000 square feet of additional new datacenter development potential at 2121 S. Price Rd. in Chandler, AZ and $13 million of uninstalled datacenter infrastructure improvements, will be approximately $725 million.
Digital Realty Trust expects to fund the purchase price with available cash, borrowings under the company’s revolving credit facility and the sale of debt or equity securities, according to a prepared statement. Subject to various closing conditions, the acquisition is expected to close on or about July 2, 2010 and may be extended in limited circumstances, according to the release.
“Upon closing, the addition of these high quality, mission critical datacenter facilities to our operating portfolio will further extend our leadership position as the largest wholesale datacenter provider in the US,” commented Michael Foust, CEO of Digital Realty Trust. “The portfolio is leased to a diverse roster of over 200 tenants in various industries.”
A. William Stein, CFO and CIO of Digital Realty Trust adds: “We expect this transaction to be accretive to our 2010 FFO on a diluted per share and unit basis upon closing and plan to provide updated guidance for the year in our second quarter 2010 earnings announcement.” Credit Suisse Securities (USA) LLC and Citi acted as financial advisors to Digital Realty Trust.
Pamela Matthews, director of investor relations at Digital Realty Trust, tells GlobeSt.com that the company’s strategy is to acquire and “hold our data centers.” Part of its strategy, she says, is to “acquire income producing operating facilities.” She also points out that the company also has a redeveloping program for properties like the Chandler, AZ property, for example.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
