Digital Realty Completes Second Sale/Leaseback Transaction With Delta Air Lines For Its Minneapolis Data Center
Poster: SySAdmin
Posted on April 1, 2013 at 3:42:01 PM
Digital Realty Completes Second Sale/Leaseback Transaction With Delta Air Lines For Its Minneapolis Data Center
SAN FRANCISCO, April 1, 2013 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, today announced that it has completed the acquisition of 1500 Towerview Road in Eagan, Minnesota, a suburb of Minneapolis. The 329,000 square foot data center facility, situated on 39 acres of land, is fully leased to Delta Air Lines. The purchase price was $37 million.
Structured as a sale-leaseback transaction, Delta Air Lines has signed an eight-year, triple net lease with Digital Realty for the facility. The three-level facility consists of approximately 86,000 square feet of raised-floor data center space capable of supporting an IT load of 8.0 megawatts.
"The acquisition of Towerview further expands our footprint in a key U.S. market and deepens our relationship with an existing customer--a major commercial airline with an extensive domestic and international network," said Michael F. Foust, chief executive officer of Digital Realty. "We look forward to continuing to work with Delta Air Lines to support their future data center requirements."
"We are beginning to see more enterprise customers, such as Delta, looking to Digital Realty to help them monetize their real estate assets while continuing to support their critical operations with a well-capitalized, long-term data center owner," said Scott Peterson, chief acquisitions officer of Digital Realty. "Our deep financial resources, acquisitions experience, and reputation with customers and sellers enable us to source and structure these complex transactions while achieving an attractive return for our shareholders."
About Digital Realty
Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center needs. Digital Realty's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty's 121 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 22.2 million square feet as of February 28, 2013, including 2.4 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 32 markets throughout Europe, North America, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at http://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. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. government's credit rating; current local economic conditions in our geographic markets; 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; increased interest rates and operating costs; 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; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical 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 or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for development; 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 for the year ended December 31, 2012. 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.
For Additional Information:
A. William Stein Pamela M. Garibaldi
Chief Financial Officer and Vice President, Investor
Relations and
Chief Investment Officer Corporate Marketing
Digital Realty Trust, Inc. Digital Realty Trust, Inc.
+1 (415) 738-6500 +1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.
Digital Realty Trust, Inc.
Web Site: http://www.digitalrealtytrust.com
SAN FRANCISCO, April 1, 2013 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, today announced that it has completed the acquisition of 1500 Towerview Road in Eagan, Minnesota, a suburb of Minneapolis. The 329,000 square foot data center facility, situated on 39 acres of land, is fully leased to Delta Air Lines. The purchase price was $37 million.
Structured as a sale-leaseback transaction, Delta Air Lines has signed an eight-year, triple net lease with Digital Realty for the facility. The three-level facility consists of approximately 86,000 square feet of raised-floor data center space capable of supporting an IT load of 8.0 megawatts.
"The acquisition of Towerview further expands our footprint in a key U.S. market and deepens our relationship with an existing customer--a major commercial airline with an extensive domestic and international network," said Michael F. Foust, chief executive officer of Digital Realty. "We look forward to continuing to work with Delta Air Lines to support their future data center requirements."
"We are beginning to see more enterprise customers, such as Delta, looking to Digital Realty to help them monetize their real estate assets while continuing to support their critical operations with a well-capitalized, long-term data center owner," said Scott Peterson, chief acquisitions officer of Digital Realty. "Our deep financial resources, acquisitions experience, and reputation with customers and sellers enable us to source and structure these complex transactions while achieving an attractive return for our shareholders."
About Digital Realty
Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center needs. Digital Realty's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty's 121 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 22.2 million square feet as of February 28, 2013, including 2.4 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 32 markets throughout Europe, North America, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at http://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. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. government's credit rating; current local economic conditions in our geographic markets; 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; increased interest rates and operating costs; 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; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical 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 or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for development; 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 for the year ended December 31, 2012. 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.
For Additional Information:
A. William Stein Pamela M. Garibaldi
Chief Financial Officer and Vice President, Investor
Relations and
Chief Investment Officer Corporate Marketing
Digital Realty Trust, Inc. Digital Realty Trust, Inc.
+1 (415) 738-6500 +1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.
Digital Realty Trust, Inc.
Web Site: http://www.digitalrealtytrust.com