Mapletree will acquire the portfolio from Digital Realty for $557 million (credit: Digital Realty UK).

SAN FRANCISCO—Digital Realty has entered into definitive agreements with affiliates of Mapletree Investments Pte Ltd and Mapletree Industrial Trust for the sale of a portfolio of 10 powered base building data centers and the establishment of a joint venture on three existing turn-key flex hyper-scale data centers. The total consideration for both transactions will be approximately $1.4 billion.

Under the terms of the agreements, Mapletree Investments and Mapletree Industrial Trust will acquire the portfolio from Digital Realty for a total purchase price of approximately $557 million. These 10 properties are fully leased and are expected to generate 2020 cash net operating income of approximately $37 million, representing a 6.6% cap rate. Digital Realty will provide transitional property management services for the portfolio for one year from the closing date at a customary market rate.

Separately, an entity jointly owned by Mapletree Investments and Mapletree Industrial Trust will purchase an 80% interest and Digital Realty will retain a 20% interest in a joint venture on three fully stabilized hyper-scale facilities located in Ashburn, VA.  Mapletree Investments and Mapletree Industrial Trust will acquire its 80% stake for approximately $811 million, valuing these three assets at approximately $1 billion.

These three facilities are fully leased and are expected to generate 2020 cash net operating income of approximately $61 million, representing a 6% cap rate. Digital Realty will continue to operate and manage these facilities, and the transaction will be completely seamless from a customer perspective.