Digital Realty Trust: Digital Realty sells TPG Real Estate 80% of Northern Virginia data centers stake for $1.3bn

Jul 28, 2023 | Posted by Abdul-Rahman Oladimeji

TPG Real Estate now owns 80% of three Digital Realty data centers in the US state of Virginia's Northern Virginia. Digital will continue to oversee the daily operations of the joint venture's facilities. The data center business aims to utilize the $1.3 billion in proceeds from the transaction to reduce its debt load.

TPG Real Estate, the real estate investment arm of the alternative asset management firm TPG, previously made investments in a joint venture with Quantum Loophole for the latter's proposed gigawatt data center facility in Frederick County, Maryland.

Approximately 104MW of IT capacity is housed in the three hyperscale data centers, mostly leased by investment-grade clients. The acquisition values the three properties at a six percent cap rate based on annualized in-place cash net operating income as of June 30, net of signed leases and known move-outs.