Digital Realty, Mapletree Acquire Data Centers for $1B
The joint-venture partners purchased three fully-leased data centers in Virginia.
ASHBURN, VA – Digital Realty has closed its previously announced, joint-venture transaction with Mapletree Investments and Mapletree Industrial Trust for three data centers in Ashburn, Virginia.
The three, fully-stabilized, Turn-Key Flex data centers were valued at $1 billion.
The hyper-scale facilities are each fully-leased and expect to generate a $61 million 2020 cash net operating income, representing a 6% cap rate.
Per the transaction, Digital Realty has retained a 20% ownership interest in the joint-venture and Mapletree acquired the 80% remaining stake for $811 million.
Mapletree’s second tranche of the transaction includes the sale of 10 fully-leased, Powered Base Building® properties for $557 million, which is expected to close in early 2020.
Citigroup served as lead financial advisor to Digital Realty, alongside CBRE and Park Hill, who served as co-advisors. Latham & Watkins and Mayer Brown served as legal advisors to Digital Realty.
Digital Realty is a global provider of data center, colocation and interconnection solutions.
Mapletree Investments Pte Ltd, headquartered in Singapore, is a real estate development, investment, capital and property management company.
Mapletree Industrial Trust is a REIT that invests in diversified portfolios of income-producing real estate, primarily in Singapore.