Digital Realty Trust: Digital Realty Announces Sale of Data Center For $205m

Digital Realty has announced the sale of a “mature” data center. The move is to ensure that more capital is available for new projects. Notably, the company did not reveal which building it sold or who acquired the facility. According to a release from the company, it has disposed of the property, which includes 34,400 square meters (370,000 square feet). The sale price is $205 million. 

Digital Realty will use the funds received to invest in new acquisitions and property and pay down debt. According to estimates, the new owner will be able to generate up to $10.7m net income from the sold property. The transaction is expected to close next month.

This is not the first time Digital Realty will be selling off old properties to invest in new properties. However, its ‘go-to’ sale is powered shell buildings with a single tenant. These buildings usually provide an unexciting but steady income to investors.