LONDON, Jan. 16, 2013 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE:DLR, news, filings), a leading global provider of data centre solutions, has completed the acquisition of a three-property data centre portfolio in the Paris area, from Bouygues Telecom, France's third largest telecommunications operator, providing fixed and mobile communications and Internet services to households and businesses, as well as cloud computing packages to enterprise customers. The purchase price for the portfolio was €60.0 million.
Structured as a sale-leaseback transaction, Bouygues Telecom has signed long-term, triple net leases with Digital Realty for all three facilities. The portfolio consists of one Tier III+ facility at Montigny-le-Bretonneux and two Tier III facilities in Bievres and Saclay. The properties total approximately 87,000 rentable square feet, with nearly five megawatts of IT capacity. Bouygues Telecom will continue to operate and maintain the facilities, which represent core infrastructure assets for its business.
"The acquisition of this institutional-quality portfolio further expands our footprint in this key European market and, equally important, adds a new network and IT service provider to our global customer base," said Michael F. Foust, Chief Executive Officer of Digital Realty. "We are very pleased to welcome Bouygues Telecom to our portfolio and look forward to continuing to work with them to support their future data centre requirements."
"We're very pleased to have established a long-term strategy for our infrastructure assets with a leading global provider of data centre solutions," said Richard Viel, Deputy Chief Executive Officer of Bouygues Telecom. "Digital Realty's global portfolio, financial strength and proven long-term investment philosophy provides the stable operating environment we were seeking to continue to grow our business in France."
"This acquisition demonstrates our ability to source and complete a highly structured transaction, enabling the seller to monetize its data centre real estate assets while continuing to maintain its critical operations with a well-capitalized, long-term data centre owner," added Scott Peterson, Chief Acquisitions Officer of Digital Realty. "Similar to the Sentrum portfolio in London that we acquired in July 2012, this is a continuation of our strategy of expanding our European footprint by acquiring high-quality, operating data centre facilities that are home to top tier global brands."
About Digital Realty
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'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's 110 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 21.2 million square feet as of October 26, 2012, including 2.2 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 32 markets throughout Europe, North America, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at http://www.digitalrealty.com.
About Bouygues Telecom
As a full-service electronic communications operator (Mobile, Fixed, TV and Internet), Bouygues Telecom stands out for its innovative products and services and award-winning customer relations serving its 11 million mobile(including Simyo and Darty Telecom) and 1.8 million fixed broadband customers (including Darty Telecom), which include more than 1.5 million professional and corporate clients. After inventing the mobile talk-plan concept in France in 1996, Bouygues Telecom has always been a pioneer in innovation: it introduced the first unlimited call plans with Millennium (1999) and Neo (2006); in 2007, it launched the first fixed-mobile convergence offer for corporate customers; in 2009, it invented the "all-in-one" solution with ideo, the first quadruple play offer in the market; and, as early as July 2011, it invented mobile telephony 2.0 with B&YOU, the first SIM-only offer available exclusively on the web. In June 2012, Bouygues Telecom launched Bbox Sensation, its new range of routers packed with the most innovative technologies on the market that will transform the digital home experience. Its mobile network covers 99% of the French population with 2G, 95% with 3G+ up to 7,2 Mbit/s and 55% with H+ up to 42 Mbit/s. Each day, the company's 9,800 employees develop solutions aligned with changing customer needs. 2,000 customer relations advisers, a distribution network of 650 Clubs Bouygues Telecom stores - with their 2,500 sales advisers - and its websites combine to ensure optimum customer service on a daily basis. www.bouyguestelecom.fr
Safe Harbor Statement
This press release contains forward-looking statements which are based on Digital Realty Trust, Inc.'s current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to its acquisition of the three-property data centre portfolio in Paris, sale-leaseback structure with Bouygues Telecom and strategy in Europe. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. government's credit rating; current local economic conditions in its geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in its industry or the industry sectors that it sells to (including risks relating to decreasing real estate valuations and impairment charges); its 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; its failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund its business activities, including re-financing and interest rate risks, its failure to repay debt when due, adverse changes in its credit ratings or its breach of covenants or other terms contained in its loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; its inability to manage its growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; its failure to successfully integrate and operate acquired or redeveloped properties or businesses; risks related to joint venture investments, including as a result of its 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; its inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; its inability to acquire off-market properties; its inability to comply with the rules and regulations applicable to reporting companies; its failure to maintain its status as a REIT; possible adverse changes to tax laws; restrictions on its ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of its 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 Digital Realty Trust, Inc. with the U.S. Securities and Exchange Commission, including Digital Realty Trust, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2011 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012. Digital Realty Trust, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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|Chief Financial Officer and||Vice President, Investor Relations||Vice President, Sales|
|Chief Investment Officer||and Corporate Marketing||Digital Realty Trust, Inc.|
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SOURCE Digital Realty Trust, Inc.