ASB Completes Sale of Infomart Dallas
ASB completed the previously announced sale of Infomart Dallas to Equinix Inc. for $800 million.
DALLAS–ASB Real Estate Investments completed the previously announced sale of Infomart Dallas, the iconic 1.6 million-square-foot data center and office complex, to Equinix Inc., the global interconnection and data center company, for $800 million. The transaction consideration consisted of cash and debt securities, which will be paid out to ASB over a 36-month period following closing.
ASB made the sale on behalf of its Allegiance Fund, a $7.4 billion core real estate investment vehicle. ASB Real Estate Investments was advised by DH Capital, as its exclusive financial advisor, and DLA Piper LLP, as legal advisor on the transaction.
Last month, ASB sold three other data centers, totaling 665,000 square feet of space, and those operations to an affiliate of IPI Data Center Partners Management LLC. Those facilities are located in San Jose; Hillsboro, OR; and Ashburn, VA. No sales price was disclosed at the request of the buyer.
An early institutional investor in data center properties, ASB purchased Infomart Dallas in 2005, expanding its capacity to 110 carriers with major tenants including Equinix, Bank of America and Verizon. The company purchased its three other data centers in separate transactions between 2008 and 2014.
“ASB and our clients have realized significant investment gains from our early entry into data center investments and now we are focused on redeploying proceeds to take advantage of current market opportunities in other real estate sectors to meet our long-term core performance objectives. The structured payout of the Equinix transaction maintains a stake in data center investments for at least three years and sets an orderly course for reallocating the capital,” said Robert Bellinger, ASB Real Estate Investments’ president and CEO.