SAN FRANCISCO and LONDON, December 18 /PRNewswire/ --
- Acquisitions include one fully leased property and one value-add redevelopment opportunity, bringing the European portfolio to over 1 million square feet
Digital Realty Trust, Inc. (NYSE: DLR), a leading owner and manager of corporate datacentres and Internet gateways, announced today the acquisition of two properties in Europe. The first property, Cressex 1, is located in suburban London and totals approximately 51,000 rentable square feet of redevelopment space. The purchase price was 6.5 million British pounds sterling. The Company plans to build 20,000 square feet of raised floor, Turn-Key Datacentre(TM) space offering 2.88 MW of IT load, as well as 15,000 square feet of supporting office/business continuity space. Construction is scheduled to commence in the first quarter of 2008 with completion expected by September 2008.
The second property, Naritaweg 52, is located in Amsterdam, Netherlands. It was purpose built as a datacentre in 2001 and totals over 63,000 rentable square feet. The purchase price was 18.9 million euros. The building is
100% leased through September 2011 to a leading international information technology services company and consists of over 24,000 square feet of raised floor technical space and nearly 21,000 square feet of office and other space.
"The addition of these two properties to our portfolio represents our continued expansion into select European markets, and is consistent with our strategy of acquiring high quality income producing assets along with value-add properties suitable for redevelopment," commented Michael F. Foust, Chief Executive Officer of Digital Realty Trust.
"We are continuing to see strong demand from customers seeking Turn-Key Datacentre(TM) space in the London market, where supply remains very limited," added Chris Crosby, Senior Vice President of Digital Realty Trust. "Redeveloping Cressex 1 gives us an opportunity to bring two 10,000 square foot PODs of Turn-Key Datacentre(TM) space to the supply-constrained London market much more quickly than if we were to develop a facility from the ground up -- meeting the current demand while avoiding much of the risk associated with greenfield developments. Building out the space utilizing our POD Architecture(TM) will bring several unique elements to the UK market. The POD Architecture(TM) employs system plus system architecture providing a full 2N power train, as opposed to the shared electrical buss N+1 infrastructure typically utilized by other providers. Additionally, with our expertise in developing to green standards, including BREEAM in Europe and LEEDS in the US, we plan to deliver these as sustainable datacentres."
Digital Realty Trust's Turn-Key Datacentres(TM) are scalable from hundreds of kilowatts of IT Load to megawatts of IT load and are located in markets throughout North America and Europe. Each Turn-Key facility is physically secure and features a state-of-the-art power and cooling architecture that has been optimized for green operation. Every Turn-Key Datacentre(TM) is built using the Company's proprietary POD Architecture(TM) and uses metered power to ensure that clients pay only for the power that they use. Each Turn-Key facility is also managed via Digital Realty Trust's Critical Facilities Management(TM) program to ensure the maximum uptime of mission critical applications.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, repositions and manages technology-related real estate. The Company is focused on providing Turn-Key Datacentre(TM) and Powered Base Building(TM) datacentre solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and internet enterprises, to manufacturing and financial services. Digital Realty Trust's 69 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacentre tenants. Comprising approximately 12.1 million rentable square feet, including 1.8 million square feet of space held for redevelopment, Digital Realty Trust's portfolio is located in 26 markets throughout North America and Europe. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.
Safe Harbor Statement
This press release contains forward-looking statements, including related to its intention to redevelop the Cressex 1 facility and the standards to be employed in connection with that redevelopment, which are based on current expectations, forecasts and assumptions that 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 the Company's markets or the technology industry; general economic conditions and economic conditions in Europe specifically; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; inability to manage domestic and international growth effectively; failure to obtain necessary outside financing; decreased rental rates or increased vacancy rates; difficulties in identifying properties to acquire and completing acquisitions at acceptable return levels; failure to successfully operate acquired properties and operations; failure of acquired properties to perform as expected; failure to successfully redevelop properties acquired for such purposes or unexpected costs related thereto; 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; risks of operating in foreign markets; 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 United States Securities and Exchange Commission, or SEC, including the Company's annual report on Form 10-K for the year ended December 31, 2006, as updated by subsequent reports on Form 10-Q and Form 8-K filed with the SEC. 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.
For Additional Information: A. William Stein Chief Financial Officer and Chief Investment Officer Digital Realty Trust, Inc. +1-415-738-6500 Pamela A. Matthews Investor/Analyst Information Digital Realty Trust, Inc. +1-415-738-6500 Chris Crosby Sales & Technical Operations Digital Realty Trust, Inc. +1-214-231-1350
Web site: http://www.digitalrealtytrust.com
A. William Stein, Chief Financial Officer and Chief Investment Officer, +1-415-738-6500, or Pamela A. Matthews, Investor-Analyst Information, +1-415-738-6500, or Chris Crosby, Sales & Technical Operations, +1-214-231-1350, all of Digital Realty Trust, Inc.
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