Press release from PR Newswire
Digital Realty and Equinix Enter Joint Venture Agreement to Acquire a Site and Develop a Build-to-Suit-Facility for Carpathia Hosting
Tuesday, February 21, 2012
Digital Realty and Equinix Enter Joint Venture Agreement to Acquire a Site and Develop a Build-to-Suit-Facility for Carpathia Hosting06:00 EST Tuesday, February 21, 2012SAN FRANCISCO, Feb. 21, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, has entered a joint venture agreement with Equinix, a provider of global data center services, to develop a build-to-suit data center facility for Carpathia Hosting, a leading provider of managed hosting services for enterprises and federal agencies. The agreement includes the sale leaseback of a three-acre site in Ashburn, Virginia that was acquired from Carpathia. Excluding a 10,000 square foot data center facility currently owned and operated by Carpathia on the site, the joint venture acquired the land and non-data center improvements from Carpathia for a purchase price of approximately $1.5 million.In conjunction with the site acquisition, the joint venture will develop a new 64,000 square foot facility based on Digital Realty's Powered Base Building architecture. The interior build-out will be based on Platform Equinix's IBX design and will be capable of supporting three 1,800 kilowatt IBXs."This transaction represents our commitment to providing customers with a data center solution that meets their specific needs," said Michael F. Foust, Chief Executive Officer of Digital Realty. "We are very pleased to be partnering with Equinix, bringing our respective expertise to this important build-to-suit project for Carpathia.""Our acquisitions and development programs combined with our real estate expertise and financial resources enable us to structure complicated transactions, such as this one, that help meet our customers' and business partners' long term objectives," said Chris Kenney, Vice President of Acquisitions for Digital Realty. 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 101 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 18.3 million square feet as of February 17, 2012, including 2.4 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 31 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.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 our joint venture with Equinix and build-to-suit facility for Carpathia Hosting, and expected size and capacity of the development. 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 center 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, June 30, 2011 and September 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 Stein Pamela M. Garibaldi Chief Financial Officer and Vice President, Investor Relations and Chief Investment Officer Corporate MarketingDigital Realty Trust, Inc. Digital Realty Trust, Inc.+1 (415) 738-6500 +1 (415) 738-6500SOURCE Digital Realty Trust, Inc.