Acquisition Bolsters Company's Strong and Growing Presence in Europe
SAN FRANCISCO, March 7, 2016 /PRNewswire/ -- Digital Realty Trust, Inc. (DLR), a leading global provider of data center, colocation and interconnection solutions, announced today it has acquired a six-acre land parcel approximately three miles west of downtown Frankfurt, Germany for a purchase price of $6 million. The site is expected to support a 27-megawatt data center campus comprised of three buildings totaling approximately 340,000 square feet. The timing for commencement of future development is subject to market demand.
"We are excited to expand our presence in Europe by establishing a foothold in Germany, which has been a longtime target market for us," said A. William Stein, Digital Realty's Chief Executive Officer. "We have begun the local entitlement process and expect to be in a position to break ground later in 2016, with the goal of delivering the first data center suite in the second half of 2017, subject to market demand. We expect the region to flourish in the coming years, and extending our global footprint to Germany will allow us to continue executing on our mission of providing our customers the trusted foundation for the digital world."
Digital Realty currently has 23 data centers in Europe, including facilities in London, Dublin, Amsterdam, Geneva and Paris.
"Frankfurt is one of the most important data center markets in the world—second in size only to London in the European region," said Chris Kenney, Senior Vice President, International. "Furthermore, it is considered the connectivity, commercial and financial capital of Germany. Market vacancy rates are approaching all-time lows, and the demand profile has improved significantly over the past several years due in large part to cloud adoption and evolving data sovereignty laws."
For Additional Information:
Andrew P. Power
Chief Financial Officer
Digital Realty Trust, Inc.
John J. Stewart / Maria S. Lukens
Digital Realty Trust, Inc.
John Christiansen / Lindsay Andrews
Sard Verbinnen & Co.
About Digital Realty
Digital Realty Trust, Inc. supports the data center and colocation strategies of more than 1,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products. https://www.digitalrealty.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 our Frankfurt acquisition, related development plans and timing, and plans and strategy in Europe. These risks and uncertainties include, among others, the following: the impact of current global economic, credit and market conditions; current local economic conditions in the metropolitan areas in which we operate; 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; 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 developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and development space; 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, 2015. 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.