Digital Realty Completes Acquisition of Eight Premium European Data centers

SAN FRANCISCO, July 5, 2016 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today that it has completed the previously announced acquisition of a portfolio of eight high-quality, carrier-neutral data centers in Europe from Equinix in a transaction valued at approximately $874 million, or a multiple of approximately 13 times the anticipated full-year 2016 portfolio EBITDA.  Final regulatory approval from the European Commission was received prior to closing.  

"Digital Realty's global platform is one of our key competitive advantages and this transaction significantly extends our footprint in the three most strategically important interconnection markets in Europe," said A. William Stein, Digital Realty's Chief Executive Officer.  "We believe that Europe will remain a growing, high-demand region for data center solutions.  This portfolio acquisition will further enable us to support the growth of our global customer base, nearly two-thirds of whom deploy data center requirements in multiple metropolitan areas across our portfolio." 

The eight-property portfolio – including five in London, two in Amsterdam and one in Frankfurt – comprises a total of approximately 213,000 net sellable square feet and 24.4 megawatts of IT load and serves a large base of over 650 clients.  These clients are predominantly concentrated in the network, cloud and IT services, content and digital media and financial services verticals, and are expected to be highly complementary to Digital Realty's target customer verticals.  

The portfolio also provides substantial available capacity, with approximately 6.9 megawatts of fully-installed power and 62,700 net sellable square feet immediately available for lease.  Entitled expansions in the London and Amsterdam facilities could add up to another 14.9 megawatts of power capacity and 88,900 net sellable square feet to support future growth. 

Digital Realty also granted Equinix an option to acquire the company's facility at 114 rue Ambroise Croizat in Paris.  Equinix has elected to exercise its option to acquire the Paris property, and on July 2, 2016, Digital Realty entered into an agreement to sell the property to Equinix for €190 million (or approximately $211 million).  The Paris property sale is subject to customary closing conditions, and is expected to close in the third quarter of 2016. 

About Digital Realty

Digital Realty Trust, Inc. supports the data center and colocation strategies of firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia.  Digital Realty's clients include global companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products.  www.digitalrealty.com

Safe Harbor Statement

This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the acquisition of the portfolio of data center assets from Equinix, the estimated 2016 portfolio EBITDA, the expected benefits from the acquisition, expected strategic and customer trends and expected timing for closing the Paris property sale.  These risks and uncertainties include, among others, the following:  the impact of current global economic, credit and market conditions; current local economic conditions in the metropolitan areas in which we operate; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; the occurrence of any event, change or other circumstance that would compromise our ability to complete the Paris property sale within the expected timeframe or at all; our failure to successfully integrate and operate acquired or developed properties or businesses, including the portfolio of data center assets from Equinix; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical and information security infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and development space; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates.  For a further list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K, as amended, for the year ended December 31, 2015 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2016.  The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

SOURCE Digital Realty Trust, Inc.

Related Links

http://www.digitalrealtytrust.com