Digital Realty Expands Data Center Space in San Francisco and Atlanta
Data center solutions provider Digital Realty Trust is yet again expanding its properties with the acquisition of a $85 million, 155,000-square-foot data center facility in San Francisco, California, and a $63 million, 334,000-square-foot one in Atlanta, Georgia.
Between its 100 properties, Digital Realty’s data center space totals approximately 17.9 million square feet, including approximately 1.8 million square feet held for redevelopment.
“These acquisitions continue our strategy of investing in institutional quality data center facilities at attractive, risk-adjusted returns for our shareholders,” Digital Realty chief acquisitions officer Scott Peterson said in a statement.
The company’s latest San Francisco facility is located at 360 Spear Street, adjacent to its 365 Main Street data center, and is 100% leased by multiple tenants. “The 360 Spear Street property adds a highly strategic asset, which abuts our 365 Main Street colocation facility in downtown San Francisco,” Peterson said. “While fully-leased today, this property has the potential to provide future expansion space for our colocation customers.”
Digital Realty’s new data center in Atlanta has three floors and is located next to the Hartsfield-Jackson Atlanta International Airport. “The property in Atlanta adds a world-class facility with quality corporate customers to our global portfolio,” added Peterson. “We believe that our investment management approach to acquiring, developing and operating data center facilities will continue to provide both our customers and our shareholders a long-term platform for growth.”
According to the leaseback agreement with the previous owner, a major US based airline, that will continue to occupy approximately 167,000 square feet under a new ten-year lease agreement with Digital Realty. Space within the facility is leased on a long term basis to a major provider of critical transaction processing solutions to companies operating in the global travel industry.
Digital Realty’s portfolio is located in 31 markets throughout Europe, North America, Singapore and Australia. Expansion appears to be a major part of Digital Realty’s strategy, and in November 2011, it closed a $1.5 billion global senior unsecured revolving credit facility to replace and improve its prior corporate revolving credit facility and Asia Pacific Revolving Credit Facility. The credit is meant to provide funds for acquisitions, development, redevelopment, debt repayment, working capital and global expansion.
