TPG Real Estate acquires 80% stake in
$1.5 billion Portfolio
AUSTIN,
Texas, July 27, 2023 /PRNewswire/ -- Digital
Realty (NYSE: DLR), the largest global provider of cloud- and
carrier-neutral data center, colocation and interconnection
solutions, and TPG Real Estate, the real estate investment platform
of alternative asset management firm TPG, announced today that they
have established a joint venture in which TPG will acquire a
majority stake in three stabilized hyperscale data centers in
Northern Virginia (the
"Portfolio"). Digital Realty will maintain a minority
interest in the portfolio while continuing to manage the day-to-day
operations of the assets, providing a seamless customer
experience.
"We welcome this partnership with TPG, a highly distinguished
investment partner," said Digital Realty Chief Investment Officer
Greg Wright. "The completion
of this stabilized hyperscale data center joint venture bolsters
and diversifies Digital Realty's capital sources with an
experienced partner and further enhances the efficiency of our
balance sheet. We remain focused on positioning Digital
Realty to prudently support our stakeholders' longer term capacity
requirements and look forward to executing on the remaining
elements of our capital plan for 2023."
"Demand for data centers continues to grow rapidly due to data
proliferation and the mass adoption of cloud computing. These
are long-term trends that we expect will only be accelerated by
recent advancements in AI," said Ty
Newell, Business Unit Partner with TPG Real Estate. "Located
in the largest and most densely connected data center hub in the
world, the Portfolio is well-positioned to address this demand.
We are excited by the outlook for the Ashburn market and look forward to working
alongside a world-class partner in Digital Realty."
The three hyperscale data centers were contributed to the joint
venture at an aggregate value of $1.5
billion. The assets contain approximately 104
megawatts of IT capacity and are primarily leased by investment
grade customers. Based on annualized in-place cash NOI at
June 30, 2023, net of signed leases
and known move-outs, the transaction values the three facilities at
approximately a 6.0% cap rate. Digital Realty will receive
approximately $1.3 billion of gross
proceeds related to the joint venture and the associated financing,
which will be used to pay down debt, for transaction related
expenses, and general corporate purposes.
TPG is investing in the Portfolio through TPG Real Estate
Partners, TPG Real Estate's dedicated opportunistic real estate
fund series.
About Digital Realty
Digital Realty brings companies
and data together by delivering the full spectrum of data center,
colocation and interconnection solutions. PlatformDIGITAL®,
the company's global data center platform, provides customers with
a secure data "meeting place" and a proven Pervasive Datacenter
Architecture (PDx®) solution methodology for powering innovation
and efficiently managing Data Gravity challenges. Digital
Realty gives its customers access to the connected communities that
matter to them with a global data center footprint of 300+
facilities in 50+ metros across 27 countries on six continents. To
learn more about Digital Realty, please visit
digitalrealty.com or follow us on LinkedIn and
Twitter.
About TPG Real Estate
TPG Real Estate (TPGRE) is the
dedicated real estate investment platform of global alternative
asset firm TPG (NASDAQ: TPG), a global alternative asset management
firm with $137 billion of assets
under management. The platform systematically pursues secular
growth trends and opportunities borne from dislocation, with
strategies that include private equity, core plus, and residential
and commercial debt. Established in 2009, TPG Real Estate Partners
(TREP) is the platform's opportunistic fund series with
$12.1 billion of assets under
management. TREP has built a differentiated investment portfolio
comprised primarily of real estate-rich platforms and portfolios
located in the United States and
Europe.
For Additional Information
Investor Relations
Jordan
Sadler / Jim Huseby
Digital Realty
+1 737 281 0101
InvestorRelations@digitalrealty.com
Media Contacts
Helen
Bleasdale
Digital Realty
+1 737 267 6822
hcbleasdale@digitalrealty.com
Courtney Power
TPG
media@tpg.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 the disposition, the joint venture,
customer demand, expected benefits, use of proceeds and the
company's strategy. For a 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. 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.
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SOURCE Digital Realty