SAN FRANCISCO, Oct. 25 /PRNewswire-FirstCall/ -- Digital Realty Trust,
Inc. (NYSE: DLR), a leading owner and manager of corporate data centers and
Internet gateways, today announced that it has entered into separate
agreements to acquire two additional properties in Western Europe: IBM
Technology Park in Mainz, Germany and the Geneva Data Center in Geneva,
Switzerland. The IBM Technology Park is strategically located in the greater
Frankfurt area and is less than 20 minutes from the Frankfurt International
Airport. These investments represent the significant expansion of Digital
Realty Trust's technology property strategy in Europe.
The IBM Technology Park is comprised of 11 buildings on an approximately
80 acre campus totaling approximately 1.5 million net rentable square feet.
The site houses IBM Deutschland's mission critical data center, software
development operations and support functions in 590,000 square feet subject to
a long-term lease.
The remaining 910,000 net rentable square feet of the campus is comprised
of clean room manufacturing facilities, R&D, warehouse and office space
containing approximately 500,000 square feet of available redevelopment space.
The initial purchase price is approximately 77.1 million Euros and the
expected unleveraged cash cap rate is 9.5 percent. The seller may be entitled
to additional consideration based on future leasing activity. As a result of
this acquisition, we expect that IBM will be one of our three largest tenants,
as measured by annualized rent.
The Geneva Data Center is an approximately 60,000 square foot building
located in the Meyrin Industrial area and within close proximity to downtown
Geneva. The three-story building underwent a major renovation in 2003,
converting it to a mission critical data center. The property is 100% leased
on a long term basis to a single tenant that provides web hosting and IT
services for a customer base that includes major international financial
services and consumer product companies.
The purchase price is 10.1 million Euros and the expected unleveraged cash
cap rate on the Geneva Data Center acquisition is 9.0 percent.
"We believe that demand for technology and data center facilities will
continue to grow in Europe as in the U.S., providing attractive investment
opportunities for Digital Realty Trust. Our team of technology asset
professionals is well positioned to expand our European operations through our
relationships with technology tenants and the real estate community," said
Michael Foust, Chief Executive Officer of Digital Realty Trust. "The
acquisition of the IBM Technology Park and the Geneva Data Center demonstrates
Digital Realty Trust's expanding investment program in Western Europe. Upon
closing of these latest transactions, our European portfolio will contain four
properties totaling over 1.7 million square feet in London, Frankfurt,
Amsterdam, and Geneva."
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, repositions and manages
technology-related real estate. The Company's 38 properties contain
applications and operations critical to the day-to-day operations of
technology industry tenants and corporate enterprise data center tenants.
Comprising approximately 8.2 million net rentable square feet, excluding space
held for redevelopment, Digital Realty Trust's property portfolio is located
throughout the United States and in Western Europe. For additional
information, please visit the company's website at www.digitalrealtytrust.com.
This press release contains forward-looking statements based on current
expectations, forecasts and assumptions, including current expectations,
forecasts and assumptions related to our acquisitions of the IBM Technology
Park and the Geneva Data Center, expected cap rates for those properties,
demand for technology and data center facilities in Europe, that IBM will be
one of our three largest tenants and the size of our portfolio in Europe.
These current expectations, forecasts and assumptions involve risks and
uncertainties that could cause actual outcomes and results to differ
materially. These risks and uncertainties include adverse economic or real
estate developments in our markets or the technology industry; our ability to
consummate the acquisitions described herein, general economic conditions;
defaults on or non-renewal of leases by tenants, including by IBM Deutschland;
increased interest rates and operating costs; changes in international laws
and regulations, including related to taxes and real estate, failure to obtain
necessary outside financing; decreased rental rates or increased vacancy
rates; difficulties in identifying properties to acquire and completing
acquisitions; failure to successfully operate acquired properties and
operations, our relatively limited operating history in Europe, failure of
acquired properties to perform as expected; failure to maintain the Company's
status as a REIT; environmental uncertainties and risks related to natural
disasters; financial market fluctuations; changes in foreign currency exchange
rates; and 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
Securities and Exchange Commission. 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.
A. William Stein
Chief Financial Officer and
Chief Investment Officer
Digital Realty Trust, Inc.
415-738-6500
Minnie Wright
Investor/Analyst Information
Digital Realty Trust, Inc.
415-738-6500
SOURCE Digital Realty Trust, Inc.
10/25/2005
CONTACT: A. William Stein, Chief Financial Officer and Chief Investment
Officer, or Minnie Wright, Investor-Analyst Information, both of Digital
Realty Trust, Inc., +1-415-738-6500
Web site: http://www.digitalrealtytrust.com
(DLR)
10/25/2005 17:27 EDT http://www.prnewswire.com
