WASHINGTON, DC–Following its $800 million agreement to sell Infomart Dallas, a 1.6-million-square-foot data center and office complex, to Equinix, ASB Real Estate Investments is now reporting a separate transaction: the all-cash sale of its three remaining data centers and their operations to an affiliate of IPI Data Center Partners Management, LLC.
Pricing details of this transaction were not disclosed.
The three assets total 665,000 square feet of space and are located in San Jose, CA; Hillsboro, OR; and Ashburn, VA. ASB agreed to the sale on behalf of its Allegiance Fund, a $7.4 billion core real estate investment vehicle.
The transaction will consist of cash and debt securities, which will be paid out to the Allegiance Fund over a 36-month period following closing, which is expected by mid-year 2018.
ASB purchased Infomart Dallas in 2005, expanding its capacity to 110 carriers with major tenants that include Equinix, Bank of America and Verizon. The company added to its data center portfolio in three separate acquisitions – Infomart Silicon Valley in 2008; Infomart Portland in 2011; and Infomart Ashburn in 2014.
ASB Real Estate decided this was an ideal disposition opportunity to lock-in gains from its data center investments, according to President and CEO Robert Bellinger. “Going forward, we will retain a stake in the data center sector for the next three years through the Equinix debt securities and will have the opportunity to rebalance and further strengthen our diversified real estate portfolio,” he said in a prepared statement.
ASB was advised by DH Capital, as its exclusive financial advisor, and DLA Piper LLP, as legal advisor on the transaction.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
