Press release from PR Newswire
Digital Realty Trust Acquires Data Centre Development Site in Melbourne, Australia
Tuesday, September 06, 2011
Digital Realty Trust Acquires Data Centre Development Site in Melbourne, Australia17:00 EDT Tuesday, September 06, 2011Digital Realty Trust further expands its Asia Pacific footprint with second development site in AustraliaSYDNEY, Sept. 6, 2011 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data centre solutions, announced today that it has completed the acquisition of 162 and 163 Radnor Drive, a 30,250 square meter development site, in Melbourne, Australia for a purchase price of approximately AU $4.1 million. This represents the second acquisition in Australia for Digital Realty Trust. The property is located within the Paramount Industrial Park development, approximately 19 kilometers west of the Melbourne central business district, close to the Western Freeway and Western Ring Road. The first project, 162 Radnor Drive, is capable of supporting the development of four 1440 kW Turn-Key Datacentre® PODs. The second project, 163 Radnor Drive, is capable of supporting the development of two 1440 kW Turn-Key Datacentre PODs. The Company is finalizing development approvals for the sites before commencing construction of the new facilities."As one of Australia's largest metro areas, Melbourne is the logical market for us to expand our footprint in the region," said Michael F. Foust, Chief Executive Officer for Digital Realty Trust. "Like Sydney, Melbourne has a limited supply of data centre space available to meet customer demand for highly reliable, flexible and secure facilities." "We have been actively engaged in discussions with a number of serious prospects in Melbourne prior to completing this acquisition," said Kris Kumar, Regional Head, Asia Pacific, Digital Realty Trust. "At the same time, we have been building out our operating platform in Australia with the addition of several new local team members. With our Australian staff in place, we will be able to deliver secure, reliable and cost effective data centre solutions to customers that are expanding their IT operations in the region. Consistent with our typical development timeline, we expect a twelve month construction period to complete the first building's shell and core and the first two 1440 kW Turn-Key Datacentre PODs."Each Digital Realty Trust Turn-Key Datacentre® 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 is built using the Company's proprietary POD Architecture® and uses metered power to ensure that clients pay only for the power that they use. The facility also comes standard with Digital Realty Trust's PowerVU software, which enables centralized monitoring and management of data centre power consumption, energy efficiency and load analysis. About Digital Realty Trust, Inc.Digital Realty Trust, Inc. focuses on delivering customer driven data centre solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data centre needs. Digital Realty's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty's 97 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 17.2 million square feet as of September 6, 2011, including 2.2 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 30 markets throughout Europe, North America, Singapore and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at http://www.digitalrealtytrust.com. Safe Harbor StatementThis 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 acquisition of the development site in Melbourne, Australia, plans for construction at the site, expected timing for completion of development plans, expected IT capacity of the development, and supply and demand in the Melbourne market. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions including the downgrading of the U.S. government's credit rating; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data centre space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including 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 U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2010 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011. 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 SteinPamela M. GaribaldiKris KumarChief Financial Officer andVice President, Investor Relations Regional Head Asia Pacific &Chief Investment Officerand Corporate MarketingVP Corporate DevelopmentDigital Realty Trust, Inc.Digital Realty Trust, Inc.Digital Realty Trust, Inc.+1 (415) 738-6500+1 (415) 738-6500+65 6505 3900SOURCE Digital Realty Trust, Inc.