Alliance Transforms the Build-to-Suit Data Center Market by Creating the First Entity that Offers Customers Complete Datacenter Solution without Financing Contingencies
SAN FRANCISCO, Jan 20, 2010 /PRNewswire via COMTEX/ -- Digital Realty Trust, Inc. (NYSE:DLR, news, filings), the world's largest wholesale datacenter provider, and KDC (www.kdc.com), one of America's leading commercial real estate development and investment firms, have formed an alliance that creates the first single source for every aspect of build-to-suit enterprise data center projects. Through this alliance, enterprise customers can utilize KDC and Digital Realty Trust's financial and technical resources and unmatched experience to pursue custom-built datacenter projects of any scope in any location around the world.
"For the first time, customers have a one-stop shop for their build-to-suit datacenter projects. KDC and Digital Realty Trust together form the single provider for custom build-to-suit datacenters for enterprise customers without financing contingency risk," said Chris Crosby, Senior Vice President, Corporate Development at Digital Realty Trust.
Crosby added, "KDC is the leader in corporate build-to-suit projects, having developed more than 110 over the past decade. The firm has a tremendous track record in completing custom development projects on-time and on-budget. KDC's expertise is a perfect complement to Digital Realty Trust because we are the ultimate landlord for built-to-suit datacenters. Customers can leverage our experience and expertise during the design process as well as take advantage of access to our global purchasing arrangements for data center components. Additionally, we are able to provide a lease for the custom datacenter (including the mechanical and electrical plant) without financial contingency, offering a simple financial model that saves customers significant capital."
"This alliance is a natural complement for both companies. Digital Realty Trust is the world's leading wholesale datacenter provider and KDC sets the standard in the customized build-to-suit corporate facilities marketplace," said Steve Van Amburgh, CEO at KDC. "This relationship will provide build-to-suit datacenter customers with a single source solution that delivers global resources and unmatched experience in custom development projects. At a time when most companies are having difficulty obtaining financing for major construction projects, our alliance provides a simple, best-in-class process for the leasing of a custom datacenter facility."
"The timing is ideal for the emergence of a national developer that can finance and develop build-to-suit data centers that will fit the location and technical needs of the end user," said Ab Atkins, Senior Vice President at KDC. "The alliance between KDC and Digital Realty Trust is the perfect platform to meet this market need head on."
KDC, one of America's leading commercial real estate and investment companies, provides a full range of commercial real estate services including corporate build-to-suit development, acquisitions, corporate facility project/construction management, project financing, asset and land management, and marketing and leasing. KDC is headquartered in Dallas and has offices in Atlanta; Charlotte, N.C.; and Detroit. For more information visit www.kdc.com.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter(R) and Powered Base Building(R) datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust's 81 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 14.4 million rentable square feet as of January 4, 2010, including 1.9 million square feet of space held for redevelopment, Digital Realty Trust's portfolio is located in 27 markets throughout North America and Europe. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.
Safe Harbor Statement
This 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. These risks and uncertainties include the impact of the current deterioration in the global economy, including the turmoil in the financial and credit markets; the downturn of 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; decreases in real estate valuations and resulting impairment charges; our dependence upon significant tenants; bankruptcy or insolvency of one or more major tenants 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 for refinancing current debt obligations, undertaking or completing redevelopment, completing acquisitions or other purposes; increased interest rates and operating costs; our failure to repay debt when due or our breach of covenants or other terms contained in our loan documents; financial market fluctuations; changes in foreign currency exchange rates; our ability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of certain of these 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; inability to successfully redevelop 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 public 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; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; 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 United States Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2008 and the Company's quarterly reports on Form 10-Q for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009. 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.
Turn-Key Datacenter, Powered Base Building and POD Architecture are registered trademarks of Digital Realty Trust.
For Additional Information:
A. William Stein
Chief Financial Officer and
Chief Investment Officer
Digital Realty Trust, Inc.
+1 (415) 738-6500
Director of Investor Relations
Digital Realty Trust, Inc.
+1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.