CapitaLand acquires a data center in London, UK, from Digital Realty

CapitaLand, a Singaporean investment company, has acquired a London, UK, data center from Digital Realty. The manager of CapitaLand Ascendas REIT, CapitaLand Ascendas REIT Management Limited, announced this week the purchase of a colocation data center from an "unrelated global data center operator" for $159 million. According to the company, the property is in Watford, just north of London.

The property is probably the Chess Building, a 31 MW data center on a 269,100 sq ft lot. The two-story building operated by Digital Realty offers 90,400 square feet of rentable space. Digital has not commented on the deal. The transaction will be funded through debt financing and earnings from a previously disclosed equity fundraising.

CapitaLand Ascendas REIT now owns five data centers in London, all bought from Digital Realty in the past few years. Five investment-grade tenants working in information and communications technology, retail, energy, and financial services, according to the company, account for 80% of the property's occupancy.

The Chess Building was constructed in 2008, and Digital acquired it from Sentrum in 2012 as part of a three-building portfolio.