Digital Realty Adds Properties in NJ, UK
June 27th, 2008 By: Rich Miller
Digital Realty Trust, Inc. (DLR) announced today that it has acquired a data center property in the United Kingdom and completed the purchase of a facility in Franklin Township, New Jersey.
Digital Realty said it has bought the Reynolds House Datacenter in Manchester, a technology hub in England. The 38,600 square foot facility was built as a data center in 2001 and has 23,000 square feet of raised floor, with expansion space available for an additional 7,000 square feet of raised floor. The facility is fully leased to three tenants with long term agreements.
Digital also said it has completed the purchase of 650 Randolph Road, a property in Franklin Township, NJ that was developed as a data center “shell.” The 127,800 square foot building can support 70,000 square feet of raised floor technical space. Digital Realty said it would make additional improvements to bring the facility up to its Powered Base Building specification, and then market the facility to financial service companies, system integrators and other Fortune 1000 firms.
Digital Realty signed an agreement last December to buy 650 Randolph Road for $10.9 million. The deal reflects Digital Realty’s interest in the New Jersey data center market, where it also recently bought 365 South Randolphville Road in Piscataway, which borders Franklin Township.
“The addition of 650 Randolph Road in Franklin Township, New Jersey provides us with additional redevelopment inventory in a market that continues to experience strong demand for our Turn-Key Datacenter and Powered Base Building solutions,” said Digital Realty CEO Michael Foust. “It is ideally located for companies seeking large blocks of high quality datacenter space in the Metro New York market.
“The addition of Reynolds House Datacenter in Manchester to our European portfolio of income producing properties expands our footprint in an important market for us at an attractive cap rate,” Foust added.