Digital Realty's Interxion has acquired the freehold to the land under its Hanauer Landstraße campus in Frankfurt.
The site consists of nine Interxion data centers with around nine years of remaining lease term, Interxion’s German headquarters, and several buildings currently leased to other customers.
The Hanauer Landstraße campus currently contains around 43,000 square meters (463,000 sq ft) on 6.5 hectares of land, 40 percent of which is leased to 21 customers with a weighted-average remaining lease term of approximately four years. At expiration, Interxion plans to redevelop the third party-leased portion to build out additional data center capacity.
No more landlords
The company also reached an agreement to acquire an expansion parcel, formerly known as the Neckermann property, within around one kilometer of the Hanauer Landstraße campus.
The extra land totals 107,000 square meters (1,152,000 sq ft) and will support the development of up to 180MW of additional IT capacity. The acquisition is expected to close in two stages, with the final transfer of ownership in early 2021.
“We believe we are creating significant value by combining the leasehold and freehold positions on one of the most highly connected campuses in Europe, while the assemblage of adjacent expansion capacity provides long-term certainty for the coverage, capacity, and connectivity requirements to support our customers’ digital ambitions," Digital Realty CEO A. William Stein said.
Interxion CEO David Ruberg added: “Acquiring the freehold to our existing campus as well as a sizable site for further expansion will enable customers to rapidly scale their digital transformation strategies by deploying critical infrastructure with a leading global data center provider and joining a thriving community of interest.”