Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-Publicly traded Digital Realty Trust Inc. has an additional $150 million to spend. The locally based datacenter REIT modified, extended and expanded its senior unsecured revolving credit facility, increasing the total capacity to $650 million from $500 million and gaining the option to expand it by another $100 million. The company says it will use the additional dollars for acquisitions and development, working capital and general corporate purposes.

Thirteen banks participated in the new facility, which now matures in August 2010 and has two one-year extension options. Digital Realty says the applicable margin ranges from 12.5 to 25 basis points lower than the applicable margin for the earlier facility and the covenants have been modified to provide it with greater financial flexibility and increased borrowing capacity.

Prior to the changes, as of June 31, 2007, Digital Realty’s unsecured credit facility carried an interest rate that was equal to 1-month LIBOR plus 1.50% and matured on Oct. 31, 2008, according to its most recent 10Q filed with the SEC. Outstanding principal related to the facility was $114.3 million, split fairly evenly between US Dollars, Euros and British Sterling.

“We greatly appreciate the confidence and support from our lenders, particularly given current credit conditions,” Digital Realty CFO A. William Stein says in a prepared statement.

Realty Trust owns 11.8 million sf in 65 properties in 26 markets throughout North America and Europe. Most recently, the company boosted its St Louis portfolio by acquiring two properties and putting a third under contract.

On Aug. 29, the company announced that it bought 310,000 sf in two well-leased buildings there known as the Bandwidth Exchange Buildings for $53 million. Shortly thereafter, it tied up One Savvis Parkway The 156,000-sf, five-story office building is 100% leased for the next 10 years to Savvis Inc. The purchase price is $27.7 million. Both transactions work out to a per-sf price of approximately $177 per sf.

“We started as a private equity fund, with CalPERS as a partner, in 2001, to focus on acquiring technology related properties,” a company source told GlobeSt.com recently. Coming at the time of the dot.com fallout, the move “was a contrarian play,” says the source, “but we felt as though despite economic challenges, the Internet was not going away. Previous owners had made significant investment in these properties, it requires tremendous power to run and cool them, it can be a $600 to $800 per sf build-out cost.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.