Digital Realty Trust, Inc. (NYSE: DLR), a wholesale datacenter provider, announced today that it entered into a definitive asset purchase agreement to acquire a five-property data center portfolio located in California, Arizona and Virginia, referred to as the Rockwood Capital/365 Main Portfolio.
The company is purchasing the portfolio, which comprises approximately 919,000 sq ft and consists of 365 Main Street in San Francisco; 2260 East El Segundo Boulevard in El Segundo, California; 720 2nd Street in Oakland; 2121 South Price Road in Chandler, Arizona; and 4030-4050 Lafayette Center Drive in Chantilly, Virginia, from joint ventures that are majority-owned by affiliates of Rockwood Capital and managed by 365 Main, Inc. All data centers in the Rockwood Capital/365 Main Portfolio were developed in 2000 or later.
The purchase price for the Rockwood Capital/365 Main Portfolio, which includes approximately 250,000 sq ft of additional new datacenter development potential at 2121 South Price Road in Chandler, Arizona and $13 million of uninstalled datacenter infrastructure improvements, will be approximately $725.0 million (subject to adjustment in limited circumstances). The company expects to fund the purchase price with available cash, borrowings under the company's revolving credit facility and the sale of debt or equity securities. Subject to various closing conditions, the acquisition is expected to close on or about July 2, 2010 and may be extended in limited circumstances.
"Upon closing, the addition of these high quality, mission critical datacenter facilities to our operating portfolio will further extend our leadership position as the largest wholesale datacenter provider in the U.S.," commented Michael F. Foust, CEO of Digital Realty Trust. "The portfolio is leased to a diverse roster of over 200 tenants in various industries."
"We expect this transaction to be accretive to our 2010 FFO on a diluted per share and unit basis upon closing and plan to provide updated guidance for the year in our second quarter 2010 earnings announcement," added A. William Stein, CFO and chief investment officer of Digital Realty Trust.
Credit Suisse Securities (USA) LLC and Citi acted as financial advisors to Digital Realty Trust, Inc.