CoreSite Prices IPO at $15 to $17

CoreSite Realty Corp. said today that shares of its initial public offering will be priced at $15 to $17  a share, and that the company expects to raise about $245 million with the offering. 

CoreSite will become the third data center REIT, following in the footsteps of Digital Realty Trust (DLK) and DuPont Fabros Technology (DFT). All three offer finished “wholesale” data center space, which has been in high demand as end users seek turn-key space that can be deployed quickly.

CoreSite says it will use the proceeds of the IPO to repay debt and develop additional data center space, according to its SEC filing. The company operates 11 data centers in major markets around the U.S., comprising a total of 2 million square feet of rentable space. CoreSite also has the capability to add another 1 millions quare feet through the redevelopment of vacant space in existing buildings (481,000 SF) and building 496,250 square feet of new data center construction on land it owns.

CoreSite LP is affiliated with the huge private equity firm The Carlyle Group. CoreSite Realty will be formed through a series of restructuring transactions prior to the IPO between CoreSite LP and Carlyle, which will receive stock in exchange for the data center properties they are contributing. The CoreSite Realty REIT will then function as the operating unit of CoreSite LP, which will own the company’s 11 data center properties.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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