Press release from PR Newswire
Digital Realty and Clise Properties Sign Build to Suit Agreement with Equinix on Development Site in Downtown Seattle
Wednesday, October 19, 2011
Digital Realty and Clise Properties Sign Build to Suit Agreement with Equinix on Development Site in Downtown Seattle08:05 EDT Wednesday, October 19, 2011Redevelopment project is located adjacent to the Westin BuildingSAN FRANCISCO, Oct. 19, 2011 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a global provider of data center solutions, has entered into a 50/50 joint venture partnership with Clise Properties, Inc. to redevelop a six-story parking garage to include four floors of data center space. The site is located adjacent to the Westin Building in downtown Seattle, where Digital Realty and Clise Properties are partners in an existing joint venture. The new joint venture partnership subsequently signed a build to suit agreement with Equinix at the site, which will support 4,100 kilowatt of IT capacity. As joint venture partners, Digital Realty and Clise Properties, Inc. are responsible for funding the base building improvements and data center shell construction."We are very pleased to be working with Digital Realty on this important project for Equinix," said A. M. Clise, Chairman and Chief Executive Officer of Clise Properties, Inc. "We have worked in close partnership with Digital Realty for a number of years at the Westin building, the Northwest region's premier Internet Gateway data center. This new project represents our shared commitment to successfully meet our customers' ongoing data center requirements." "We continue to see strong demand for Platform Equinix in the Seattle market, and we are investing in the Pacific Northwest to support the requirements of our expanding customer base," said Charles Meyers, President of the Americas for Equinix. "By leveraging the real estate acquisitions and construction expertise of Digital Realty and Clise Properties, Inc. we will be able to bring our new Seattle IBX data center online quickly and efficiently.""This year we have seen a significant increase in demand for our build-to-suit data center solution from customers that have large expansion requirements, such as Equinix," said Michael F. Foust, Chief Executive Officer of Digital Realty. "With our financial resources and acquisitions and development expertise, we can readily deliver to customers even the most complex projects on time and on budget. We are very pleased to expand our successful partnership with the Clise organization on this important new facility."About Digital RealtyDigital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center 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 98 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 17.3 million square feet as of October 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.digitalrealty.com.About Clise Properties, Inc.Clise Properties, Inc., a privately held company, was founded in 1889 by J.W. Clise. The company owns and manages more than 3 million square feet of commercial property predominately in the Denny Triangle area of downtown Seattle. In addition to its significant land holdings, property types include office, retail, telecom, medical office, and hotels. The company is currently headed by A. M. Clise, Chairman and CEO.Safe Harbor StatementThis press release contains forward-looking statements which are based on Digital Realty Trust, Inc.'s current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to its LEED-certified data centers. 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 its geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in its industry or the industry sectors that it sells to (including risks relating to decreasing real estate valuations and impairment charges); its 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; its failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund its business activities, including re-financing and interest rate risks, its failure to repay debt when due, adverse changes in its credit ratings or its breach of covenants or other terms contained in its loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; its inability to manage its growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; its failure to successfully integrate and operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of its 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 center space; its inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; its inability to acquire off-market properties; its inability to comply with the rules and regulations applicable to reporting companies; its failure to maintain its status as a REIT; possible adverse changes to tax laws; restrictions on its ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of its 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 Digital Realty Trust, Inc. with the U.S. Securities and Exchange Commission, including Digital Realty Trust, Inc.'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. Digital Realty Trust, Inc. 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. GaribaldiChief Financial Officer andVice President, Investor Relations and Chief Investment OfficerCorporate MarketingDigital Realty Trust, Inc.Digital Realty Trust, Inc.+1 (415) 738-6500+1 (415) 738-6500SOURCE Digital Realty Trust, Inc.