Tuesday, October 17, 2017

Digital Realty closes $135m in secured debt refinancing proving the demand for ‘data centres as an asset class from debt capital providers’

Provider extends debt maturity profile as it promises to continue “to prudently fund the growth of our global portfolio”.

The booming demand for data centre power from all verticals is moving debt capital funds at some of the largest operators in the world.

One of those operators is Digital Realty which has announced the closing of a $135m ten-year mortgage on the Westin Building Exchange, the internet exchange for the Pacific Northwest in Seattle, Washington, which is owned in a 50/50 joint venture partnership with Clise Properties.

The mortgage financing bears interest at a fixed rate of 3.29% per annum and matures in June 2027, replacing the existing $101m secured loan bearing interest at 6.37% and maturing in September 2017.

The new, non-recourse mortgage loan will be interest-only during the ten-year term, with the entire principal amount due at maturity.

Andrew P. Power, Digital Realty’s Chief Financial Officer, said: “The strong interest in this mortgage loan reflects both the growing demand for data centres as an asset class from debt capital providers, as well as the significant value creation at the Westin Building under the stewardship of Digital Realty and Clise Properties.

“This opportunistic refinancing enables us to extend our debt maturity profile at an attractive cost as we continue to prudently fund the growth of our global portfolio.

“We are pleased with the significant interest from the lending community across numerous institutions, and to work exclusively with Wells Fargo Bank, N.A. and Credit Suisse as originators.”