Digital Realty closes $557m data centre portfolio sale to Mapletree

One of the data centres that has been sold

The data centre giants first broke its silence on its decision to enter into definitive agreements with affiliates of Mapletree Investments back in September 2019.

Digital Realty (NYSE: DLR) has closed the previously announced sale of a portfolio of ten Powered Base Building data centres to Mapletree Investments and Mapletree Industrial Trust. 

Mapletree Investments and Mapletree Industrial Trust acquired the Powered Base Building portfolio from Digital Realty for a total purchase price of approximately $557m.

These ten properties are fully leased and are expected to generate 2020 cash net operating income of approximately $37m. 

Digital Realty revealed that it will provide transitional property management services for the portfolio for one year from the closing date at a customary market rate.


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“We are pleased to have closed the second tranche of our transaction with Mapletree, which represents an important step towards our goal of self-funding our growth and diversifying our sources of equity capital, while setting the stage for accelerating growth as proceeds are redeployed into accretive investment opportunities,” said Digital Realty Chief Executive Officer A. William Stein. 

“We are delighted to partner with the high-caliber team at Mapletree to close a transaction that meets both companies’ objectives, and we look forward to collaborating with Mapletree as joint venture partners and exploring additional opportunities together worldwide.”

Citigroup served as lead financial advisor to Digital Realty, along with CBRE who served as co-advisor.  Latham & Watkins and Mayer Brown served as Digital Realty’s legal advisors.

Elsewhere, one month after Digital Realty announced the sale of the ten Powered Base Building data centres, Digital Realty and Interxion (NYSE: INXN) announced that the pair entered into a definitive agreement to combine their portfolios and “create a leading global provider of data centre, colocation and interconnection solutions”.

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