Digital Core REIT is to increase its stake in a Digital Realty data center in Frankfurt, Germany.
The Digital Realty-sponsored real estate investment trust (REIT) is to acquire a 24.9 percent interest Wilhelm-Fay-Straße 15 and Wilhelm-Fay-Straße 24 for €117 million ($128.7 million).
Digital Core REIT Management Pte. Ltd., the REIT’s manager this week announced its subsidiary, Digital CR Singapore 5 Pte. Ltd. has entered into a reinstatement and first amendment to the contribution and sale agreement with Digital Realty Trust, to acquire an interest in the property.
Singapore Sub 5 has agreed to purchase the interest in the shares of Digital Greenfield B.V, which owns the Frankfurt Facility, from Digital Germany Holding, LLC, a wholly-owned subsidiary of Digital Realty, together with an equivalent percentage participation interest in the existing €300 million unsecured intercompany revolving loan facility between Digital Euro Finco L.P, another Digital Realty subsidiary.
Launched in 2017, the purpose-built data center totals 449,550 net rentable square feet (41,765 sqm) and 34MW, and is 92 percent leased to a “roster of blue-chip customers.”
Digital Core REIT already owned a significant minority of the facility. The company originally acquired 25 percent of the facility in 2022.
Plans were to acquire a further 20 percent of the facility in November 2023 – which was expanded by a further 4.9 percent in Q1 2024. With the closing of the deal, Digital Core REIT will own 49.9 percent of the facility.
Digital Core REIT, through Singapore Sub 5, also has the option to acquire further stakes in the facility and take its ownership in the site to between 50.1 percent and 89.9 percent.
Singapore-listed Digital Core REIT was set up by Digital Realty to hold a number of its stabilized data centers. The company was seeded with a portfolio of 10 data centers from Digital Realty across the US & Canada in Northern Virginia, Northern California, Los Angeles, and Toronto totaling more than 1.2 million sq ft and 49MW.
It has since acquired a stake in a Digital Realty facility in Osaka, Japan, and divested two facilities in Santa Clara, California.
