Digital Realty Enters into Definitive Share Sale and Purchase Agreement for a Three-Property Data Center Portfolio in London, UK for $1.1B
Digital Realty Trust, Inc. (the "Company" or "Digital Realty") (NYSE: DLR), a leading global provider of data center solutions, announced today that it entered into a definitive share sale and purchase agreement to acquire a three-property data center portfolio located in the greater London area, referred to as the Sentrum Portfolio. The Sentrum Portfolio comprises approximately 761,000 square feet across three data centers located in Woking, Watford and Croydon.
The purchase price of the Sentrum Portfolio will be approximately 715.9 million pounds Sterling (equivalent to $1.1 billion based on the June 25, 2012 exchange rate of 1.00 pound to $1.56) (subject to adjustment in limited circumstances and to additional earn-out payments based on a multiple of the net operating income from the lease-up of currently vacant space in the portfolio in the next three years). The Company expects to fund the purchase price and related earn-out payments with available cash, borrowings under the Company's global revolving credit facility, a bridge loan facility and/or the sale of debt or equity securities. Subject to various closing conditions, the acquisition is expected to close on or about July 31, 2012 and may be shortened or deferred in limited circumstances.
"We believe the addition of these high quality, mission critical facilities to our operating portfolio will enable us to serve a wide variety of customers seeking institutional quality data center space in London, a highly strategic global data center market," said Michael F. Foust, CEO of Digital Realty.
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