Digital Realty Acquires Six-Building Portfolio In Austin, Texas
SAN FRANCISCO, May 30, 2013
SAN FRANCISCO, May 30, 2013 /PRNewswire/ --Digital Realty Trust, Inc. (NYSE:
DLR), a leading global provider of data center solutions, today announced that
it has completed the acquisition of a six-building portfolio consisting of
operating data centers and flex office space totaling approximately 337,000
square feet at the MetCenter Business Park in Austin, Texas. The overall
portfolio is currently 90% leased to a variety of data center, biotechnology,
technology and/or telecommunications enterprises. Two of the six buildings,
totaling approximately 100,000 net rentable square feet, are operating data
centers that are 100% leased to three tenants. The remaining four properties
consist of flex office space. The purchase price was $31.9 million.
"The acquisition of this portfolio achieves several key objectives for us,"
said Scott Peterson, Chief Acquisitions Officer at Digital Realty. "It expands
our existing data center footprint in the Austin market, while providing
stable cash flow immediately at an attractive going-in cap rate. Second, it
provides near-term opportunity to add value by lease existing vacant space.
And third, it offers the option to convert a portion of the property to data
center space over the longer term as leases expire."
The six buildings are located adjacent to Digital Realty's data center at 7500
Metro Center Drive, approximately five miles southeast of the Austin central
business district, and nearby Austin-Bergstrom International Airport.
"This acquisition adds inventory to a market where we have already seen
substantial absorption at our existing facilities, as well as strong demand
from enterprise customers," said Michael Foust, Chief Executive Officer at
Digital Realty. "It is a continuation of our strategy of growing a world class
data center portfolio in markets where our customers want to be located."
About Digital Realty
Digital Realty Trust, Inc. focuses on delivering customer driven data center
solutions by providing secure, reliable and cost effective facilities that
meet each customer's unique data center needs. Digital Realty's customers
include domestic and international companies across multiple industry
verticals ranging from information technology and Internet enterprises, to
manufacturing and financial services. Digital Realty's 122 properties,
excluding three properties held as investments in unconsolidated joint
ventures, comprise approximately 22.7 million square feet as of April 26,
2013, including 2.6 million square feet of space held for development. Digital
Realty's portfolio is located in 32 markets throughout North America, Europe,
Asia and Australia. Additional information about Digital Realty is included in
the Company Overview, which is available on the Investors page of Digital
Realty's website at www.digitalrealty.com.
Safe Harbor Statement
This press release contains forward-looking statements which are based on
current expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to differ
materially, including statements related to our acquisition of the
six-building portfolio in Austin, Texas, our strategy and plans regarding the
acquisition and our portfolio, and absorption and demand in the Austin market.
These risks and uncertainties include, among others, the following: the impact
of the recent deterioration in global economic, credit and market conditions,
including the downgrade of the U.S. government's credit rating; current local
economic conditions in our geographic markets; decreases in information
technology spending, including as a result of economic slowdowns or recession;
adverse economic or real estate developments in our industry or the industry
sectors that we sell to (including risks relating to decreasing real estate
valuations and impairment charges); our dependence upon significant tenants;
bankruptcy or insolvency of a major tenant or a significant number of smaller
tenants; defaults on or non-renewal of leases by tenants; our failure to
obtain necessary debt and equity financing; increased interest rates and
operating costs; risks associated with using debt to fund our business
activities, including re-financing and interest rate risks, our failure to
repay debt when due, adverse changes in our credit ratings or our breach of
covenants or other terms contained in our loan facilities and agreements;
financial market fluctuations; changes in foreign currency exchange rates; our
inability to manage our growth effectively; difficulty acquiring or operating
properties in foreign jurisdictions; our failure to successfully integrate and
operate acquired or developed properties or businesses; the suitability of our
properties and data center infrastructure, delays or disruptions in
connectivity, failure of our physical infrastructure or services or
availability of power; risks related to joint venture investments, including
as a result of our lack of control of such investments; delays or unexpected
costs in development of properties; decreased rental rates or increased
vacancy rates; increased competition or available supply of data center space;
our inability to successfully develop and lease new properties and space held
for development; difficulties in identifying properties to acquire and
completing acquisitions; our inability to acquire off-market properties; our
inability to comply with the rules and regulations applicable to reporting
companies; our failure to maintain our status as a REIT; possible adverse
changes to tax laws; restrictions on our ability to engage in certain business
activities; environmental uncertainties and risks related to natural
disasters; losses in excess of our insurance coverage; changes in foreign laws
and regulations, including those related to taxation and real estate ownership
and operation; and changes in local, state and federal regulatory
requirements, including changes in real estate and zoning laws and increases
in real property tax rates. For a further list and description of such risks
and uncertainties, see the reports and other filings by the Company with the
U.S. Securities and Exchange Commission, including the Company's Annual Report
on Form 10-K for the year ended December 31, 2012 and Quarterly Report on Form
10-Q for the quarter ended March 31, 2013. The Company disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
For Additional Information:
A. William Stein Pamela M. Garibaldi
Chief Financial Officer and Vice President, Investor Relations
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. +1 (415) 738-6500
+1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.
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