Digital Realty Cancels Deal for German Property
December 8th, 2005 By: Rich Miller
Digital Realty Trust said today that it has terminated a $93 million deal to purchase the IBM Technology Center near Mainz, Germany, citing the sellers’ failure to meet closing conditions and other issues that arose during due diligence.
The termination was disclosed in an SEC filing by Digital Realty, which had described the acquisition as an important step in its expansion into the European data center market. DRT signaled that the deal isn’t entirely dead, however, saying it intends to continue discussions with the owner under different terms. “No assurances can be given that we will enter into any agreement to acquire IBM Technology Park or that any such agreement will close,” the company noted.
The IBM Technology Park includes 11 buildings spanning 1.5 million rentable square feet on 80 acres. IBM leases 590,000 square feet for a mission critical data center, software development operations and support functions. The remaining 910,000 net rentable square feet of the campus is comprised of clean room manufacturing facilities, R&D, warehouse and office space containing approximately 500,000 square feet of available redevelopment space.
Digital Realty Trust is a real estate investment trust that is one of the world’s largest technology landlords, with 39 properties spanning 7.9 million square feet.