Digital Realty Puts $1.1B Into London

June 26th, 2012 by · Leave a Comment

Digital Realty Trust (NYSE:DLR, news, filings) made a big move over in the UK this morning. They have announced a definite agreement to acquire three data center properties in the greater London metro area, which they refer to as the Sentrum Portfolio.  The price tag comes to a hefty £715.9M, or about $1.1B in cash.

The three facilities are in Woking, Watford, and Croydon, and will add up to some 761,000 square feet to the company’s total. The new data centers are currently 80% leased to 21 tenants with an average of 8 years remaining on the leases. Digital Realty expects to use the remaining 20% (152,200 square feet) to serve additional customers needing datacetner space in the London area.

The deal is expected to close at the end of July. In the meantime, Digital Realty is planning to pay for the purchase at least in part via the sale of some common stock. This morning they also announced plans to sell 8.25M shares in an underwritten public offering, with another 1.2M for overages. That will bring in some $600-700M if all goes well.

Digital Realty has had a busy week.  They have also recently bought two properties in Texas, including a 269,900 square foot property in north Dallas and a 62,000 square foot property in Austin.  That makes nearly 1.1M feet of square feet in just a week’s time.

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Categories: Datacenter · Financials · Mergers and Acquisitions

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