SAN FRANCISCO, Nov. 4, 2019 /PRNewswire/ -- Digital
Realty (NYSE: DLR), a leading global provider of data center,
colocation and interconnection solutions, announced today it has
closed the previously announced joint venture with Mapletree
Investments and Mapletree Industrial Trust (together "Mapletree")
on three existing Turn-Key Flex® data centers located in
Ashburn, Virginia.
The transaction values the three fully stabilized hyper-scale
facilities at approximately $1.0
billion. The three facilities are fully leased and are
expected to generate 2020 cash net operating income of
approximately $61 million,
representing a 6.0% cap rate. Digital Realty is retaining a
20% ownership interest in the joint venture, and Mapletree has
closed on the acquisition of the remaining 80% stake for
approximately $811 million.
Digital Realty will continue to operate and manage these
facilities, and the joint venture transaction will be completely
seamless from a customer perspective.
The second tranche of the Mapletree transaction, the outright
sale of 10 fully-leased Powered Base Building® properties for
$557 million, is expected to close in
early 2020.
Citigroup served as lead financial advisor to Digital Realty,
along with CBRE and Park Hill who
served as co-advisors. Latham & Watkins and Mayer Brown
served as Digital Realty's legal advisors.
About Digital Realty
Digital Realty supports the data
center, colocation and interconnection strategies of customers
across the Americas, EMEA and APAC, ranging from cloud and
information technology services, communications and social
networking to financial services, manufacturing, energy, healthcare
and consumer products. To learn more about Digital Realty,
please visit digitalrealty.com or follow
us on LinkedIn, Twitter, Facebook, Instagram and YouTube.
About Mapletree Investments Pte Ltd
Mapletree
Investments Pte Ltd ("MIPL") is a leading real estate development,
investment, capital and property management company headquartered
in Singapore. Its strategic focus is to invest in markets and
real estate sectors with good growth potential. By combining
its key strengths, MIPL has established a track record of
award-winning projects, and delivers consistent and high returns
across real estate asset classes.
MIPL currently manages four Singapore-listed REIT and six private equity
real estate funds, which hold a diverse portfolio of assets in
Asia Pacific, Europe, the United
Kingdom and the United States.
As at 31 March 2019, MIPL owns and
manages S$55.7 billion of office,
retail, logistics, industrial, residential and lodging
properties.
MIPL's assets are located across 12 markets globally, namely
Singapore, Australia, China, Europe, Hong Kong SAR, India, Japan,
Malaysia, South Korea, the United Kingdom, the
United States and Vietnam. To support its global
operations, MIPL has established an extensive network of offices in
these countries.
About Mapletree Industrial Trust
Mapletree Industrial
Trust is a real estate investment trust ("REIT") listed on the Main
Board of Singapore Exchange. Its principal investment
strategy is to invest in a diversified portfolio of
income-producing real estate used primarily for industrial purposes
in Singapore and income-producing
real estate used primarily as data centres worldwide beyond
Singapore, as well as real
estate-related assets.
MIT's property portfolio comprises
87 industrial properties in Singapore and 14 data centres in the United States (40% interest through the
joint venture with Mapletree Investments Pte Ltd). The
properties in Singapore include
Hi-Tech Buildings, Flatted Factories, Business Park Buildings,
Stack-up/Ramp-up Buildings and Light Industrial Buildings. As
at 30 September 2019, MIT's total assets under management was
S$4.8 billion.
MIT is managed by Mapletree
Industrial Trust Management Ltd. and sponsored by Mapletree
Investments Pte Ltd.
For Additional Information
Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738-6500
Investor Relations
John J.
Stewart
Investor Relations
Digital Realty
(415) 738-6500
Media Inquiries
John
Christiansen / Scott
Lindlaw
Sard Verbinnen & Co.
(415) 618-8750
Mapletree Investments Pte Ltd
Marilyn Tan
Assistant Manager, Corporate Communications
Tel: +65 6807 4072
Email: marilyn.tan@mapletree.com.sg
Website: www.mapletree.com.sg
Mapletree Industrial Trust Management
Ltd.
Melissa Tan
Director, Investor Relations
Tel: +65 6377 6113
Email: melissa.tanhl@mapletree.com.sg
Website: www.mapletreeindustrialtrust.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 joint venture; the
expected 2020 cash net operating income; the expected timing and
benefits of the sale of the Powered Base Buildings®; and the
expected future benefits and management of the joint venture.
These risks and uncertainties include, among others, the following:
reduced demand for data centers or decreases in information
technology spending; decreased rental rates, increased operating
costs or increased vacancy rates; increased competition or
available supply of data center space; the suitability of our data
centers and data center infrastructure, delays or disruptions in
connectivity or availability of power, or failures or breaches of
our physical and information security infrastructure or services;
our dependence upon significant customers, bankruptcy or insolvency
of a major customer or a significant number of smaller customers,
or defaults on or non-renewal of leases by customers; breaches of
our obligations or restrictions under our contracts with our
customers; our inability to successfully develop and lease new
properties and development space, and delays or unexpected costs in
development of properties; the impact of current global and local
economic, credit and market conditions; our inability to retain
data center space that we lease or sublease from third parties;
difficulty acquiring or operating properties in foreign
jurisdictions; our failure to realize the intended benefits from,
or disruptions to our plans and operations or unknown or contingent
liabilities related to, our recent acquisitions; our failure to
successfully integrate and operate acquired or developed properties
or businesses; difficulties in identifying properties to acquire
and completing acquisitions; risks related to joint venture
investments, including as a result of our lack of control of such
investments; 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; our failure to obtain necessary
debt and equity financing, and our dependence on external sources
of capital; financial market fluctuations and changes in foreign
currency exchange rates; 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 and goodwill and other intangible asset
impairment charges; our inability to manage our growth effectively;
losses in excess of our insurance coverage; environmental
liabilities and risks related to natural disasters; our inability
to comply with rules and regulations applicable to our company; our
failure to maintain our status as a REIT for federal income tax
purposes; our operating partnership's failure to qualify as a
partnership for federal income tax purposes; restrictions on our
ability to engage in certain business activities; and changes in
local, state, federal and international laws and regulations,
including related to taxation, 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 for
the year ended December 31, 2018 and
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019 and June
30, 2019. 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.
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SOURCE Digital Realty