Tuesday, October 17, 2017

CyrusOne closes $490m data centre acquisition

Provider snaps 390,000 sqf of colocation space in less than 30 days as it continues its expansion across the US.

In what is turning out to be one of the most active weeks of 2017 in the data centre space, CyrusOne has also completed another multi-million dollar M&A.

The provider has closed a $490m deal to acquire two sites from Sentinel Data Centers in Somerset, New Jersey and Durham, North Carolina.

The deal was originally announced on February 6 but has only now been closed.

The two properties consist of more than 160,000 colocation sqf and approximately 21 MW of power capacity, with nearly 85% of the power capacity leased.

The builds sit on a combined piece-of-land measuring 51.5 acres and the facilities offer all-in-all 850,000 sqf of space.

Sentinel was advised in the transaction by DH Capital and Skadden, Arps, Slate, Meagher & Flom LLP.

Sentinel is to retain the remainder of its portfolio, which includes single-tenant data centres in Memphis, Tennessee and Rockland County, New York as well as additional minority investments in the sector.

In a joint statement, co-founders and co-CEOs Todd Aaron and Josh Rabina said: “We are grateful for the top notch partners, investors, employees and customers who have contributed so significantly to our success over the past 15 years since we started Sentinel.

“We continue to seek new opportunities as the industry evolves and look forward to both furthering these relationships and building new ones for years to come.”

In addition to its founders, major Sentinel investors include Kelso & Company and Russo Development.

Hank Mannix of Kelso said, “Josh and Todd are outstanding executives who have developed best-in-class assets distinguished by industry leading reliability and service.

“We are thrilled to have shared such a successful partnership with them during the past six years and look forward to continuing our relationship in the future.”