Digital Realty Trust to provide its customer-driven data centre solutions to meet strong local demand SINGAPORE, July 25, 2011 /PRNewswire via COMTEX/ --
Digital Realty Trust, Inc. (NYSE:DLR, news, filings), a leading global provider of data centre solutions, announced today that it has entered the Australian data centre market with the acquisition of a 3.48 hectare development site in Sydney, Australia for a purchase price of approximately $10.7 million. This represents the first acquisition in Australia for Digital Realty Trust.
The site, located in Erskine Park, an industrial precinct located in the Western Sydney Employment Hub, is capable of supporting approximately 18,600 square meters of data centre development with over 11.5MW of IT capacity. The Company has secured permitting for the development and plans to commence construction on the first phase of 9,300 square meters in the fall of 2011, which will consist of building out the first of two data centre facilities. The building is designed to support four 1440 kW Turn-Key Datacentre PODs.
"The acquisition of this site adds a very important market to our portfolio and is key to our expansion in the Asia Pacific region," said Michael F. Foust, Chief Executive Officer for Digital Realty Trust. "The Sydney market is characterized by a robust business environment, yet has a limited supply of data centre space available to meet customer demand for highly reliable, flexible and secure facilities."
"In the Sydney market, the availability of data centre space has long been the domain of colocation, managed services and regional telecommunications providers," said Kris Kumar, Regional Head, Asia Pacific, Digital Realty Trust. "We believe that our ability to deliver secure, reliable and cost effective data centre solutions will be a significant benefit to customers that are expanding their IT operations in the region. Utilizing our operating expertise and global resources, we expect a twelve month construction period to complete the building's shell and core and the first two 1440 kW Turn-Key Datacentre PODs."
Each Digital Realty Trust Turn-Key Datacentre facility is physically secure and features a state-of-the-art power and cooling architecture that has been optimized for green operation. Every Turn-Key Datacentre is built using the Company's proprietary POD Architecture® and uses metered power to ensure that clients pay only for the power that they use. The facility also comes standard with Digital Realty Trust's PowerVU software, which enables centralized monitoring and management of data centre power consumption, energy efficiency and load analysis.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. focuses on delivering customer driven data centre solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data centre needs. Digital Realty Trust's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust's 96 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 16.9 million square feet as of April 28, 2011, including 2.2 million square feet of space held for redevelopment. Digital Realty Trust's portfolio is located in 29 markets throughout Europe, North America, Singapore and Australia. Additional information about Digital Realty Trust is included in the Company Overview, which is available on the Investors page of 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, including statements related to the acquisition of the development site in Sydney, Australia, plans for construction at the site, expected timing for completion of development plans, expected size and IT capacity of the development, and supply and demand in the Sydney market. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions; current 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 (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant 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; increased interest rates and operating costs; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such 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 centre space; our inability to successfully develop 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 reporting 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; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including 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 U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2010 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. 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.
|For Additional Information:|
|A. William Stein||Pamela M. Garibaldi||Kris Kumar|
|Chief Financial Officer and||Vice President, Investor Relations||Regional Head Asia Pacific &|
|Chief Investment Officer||and Corporate Marketing||VP Corporate Development|
|Digital Realty Trust, Inc.||Digital Realty Trust, Inc.||Digital Realty Trust, Inc.|
|+1 (415) 738-6500||+1 (415) 738-6500||+65 6597 7088|
SOURCE Digital Realty Trust, Inc.