Digital Realty, Mapletree seal $1-billion JV deal

Digital Realty has closed the previously announced joint venture with Mapletree Investments and Mapletree Industrial Truston three existing Turn-Key Flex data centres located in Ashburn, Virginia.  

The transaction values the three fully stabilised hyper-scale facilities at approximately $1 billion. These are fully leased and are expected to generate 2020 cash net operating income of approximately $61 million, representing a 6% cap rate. 

Digital Realty is retaining a 20% ownership interest in the joint venture, and Mapletree has closed on the acquisition of the remaining 80% stake for approximately $811 million.

Digital Realty will continue to operate and manage these facilities, and the joint venture transaction will be completely seamless from a customer perspective. 

The second tranche of the Mapletree transaction, the outright sale of 10 fully-leased Powered Base Building properties for $557 million, is expected to close in early 2020. 

Citigroup served as lead financial advisor to Digital Realty, along with CBRE and Park Hill who served as co-advisors.  Latham & Watkins and Mayer Brown served as Digital Realty’s legal advisors.