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Digital Realty has closed the previously revealed joint venture with Mapletree Investments and Mapletree Industrial Trust on three existing Turn-Key Flex data centers located in Ashburn, Virginia.
The transaction values the three fully stabilized hyper-scale facilities at approximately $1 billion. The three facilities are fully leased and are expected to generate 2020 cash net operating income of approximately $61 million, representing a 6.0% cap rate. Digital Realty is retaining a 20% ownership interest in the joint venture, and Mapletree has closed on the acquisition of the remaining 80% stake for approximately $811 million. Digital Realty will continue to operate and manage these facilities, and the joint venture transaction will be completely seamless from a customer perspective.
The second tranche of the Mapletree transaction, the outright sale of 10 fully-leased Powered Base Building® properties for $557 million, is expected to close in early 2020.
Citigroup served as lead financial advisor to Digital Realty, along with CBRE and Park Hill who served as co-advisors. Latham & Watkins and Mayer Brown served as Digital Realty’s legal advisors.