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SAN FRANCISCO-The locally headquartered data center REIT Digital Realty Trust Inc. recently acquired properties in London and Amsterdam as part of its expansion into Europe. The company acquired a total of 114,000 sf in two buildings for a combined price of $40.3 million, according to SEC filings.

The first property, Cressex 1, is located in suburban London and totals approximately 51,000 sf that Digital Realty plans to renovate. The purchase price was $13.8 million (6.5 million pounds). The Company plans to build 20,000 sf of raised floor data center space and 15,000 sf of supporting office space. Construction is scheduled to commence in the first quarter of 2008 with completion expected by September 2008.

The second property, Naritaweg 52, is located in Amsterdam. The 63,000-sf facility was purpose built as a data center in 2001 and includes 24,000 sf of raised-floor space and 21,000 sf of office space. The building is 100% leased through September 2011 to a leading international information technology services company. The purchase price was $27.22 million (18.9 million Euros).

“We are continuing to see strong demand from customers seeking turn-key data center space in the London market, where supply remains very limited,” says Digital Realty SVP Chris Crosby. “Redeveloping Cressex 1 gives us an opportunity to bring…space to the supply-constrained London market much more quickly than if we were to develop a facility from the ground up — meeting the current demand while avoiding much of the risk associated with greenfield developments.”

Speaking of green, Crosby says the company will use environmentally friendly methods to do the work. “We plan to deliver these as sustainable data centers,” he says.

The acquisitions take Digital Realty’s Europe portfolio to nine properties, up from five one year ago. Its major markets in Europe are Amsterdam, Dublin, London and Paris. Its major competitors in Europe are Global Switch and Equinix Inc.

The remainder of the company’s 12 million-sf 70-property portfolio is in North America. Its major markets here include the Chicago, Dallas, Los Angeles, New York, Northern Virginia, Phoenix, San Francisco and Silicon Valley metropolitan areas.

Approximately 20% of the company’s operating revenue thus far in 2007 has come from two companies, Savvis Communications and Qwest Communications. No other single tenant comprises more than 10% of total operating revenues.

In October, the company completed an offering of 4.02 million shares of common stock. The sale raised $150.5 million of net proceeds.

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