Digital Realty has sold a portfolio of 11 data centers in Europe (four in the UK, three in the Netherlands, three in France and one in Switzerland) to Ascendas Reit, a CapitaLand sponsored REIT. The price for the four data centers in the UK was £250.25 million and the consideration for the seven data centers on the continent was €276.85 million, for a total of approximately $680 million. The portfolio is expected to generate 2021 net operating income of approximately $43.5 million.
"This transaction represents an important step towards our goal of self-funding our growth and diversifying our sources of equity capital while shrinking our asset base and setting the stage for accelerating growth as the proceeds are redeployed into accretive investment opportunities," said Digital Realty Chief Investment Officer Greg Wright. "These 11 legacy assets are almost fully leased, and this portfolio sale enables us to harvest value from stabilized properties and reinvest the proceeds to fund the continued expansion of PlatformDIGITAL® in support of our customers' needs around the world."
Digital Realty expects proceeds from the transaction will initially be used to pay down debt and will ultimately be used to fund future investment activity.
