Data center developer DuPont Fabros Technology (DFT) is seeking to hire a successor to President and CEO Hossein Fateh, the company said today. The board has begun a search for an executive to serve as president, with the expectation that this individual will eventually succeed Fateh.
Fateh has been the public face of DuPont Fabros, a real estate investment trust focused exclusively on the data center sector. He has been a key player in the data center real estate scene for nearly 15 years, steering DFT through significant growth and a successful IPO.
"I have been thinking for some time and discussing with the Board about the need to expand and strengthen our senior management team and plan for succession," said Fateh. "Given all that we have accomplished in the last six years, I believe that now is the right time to begin the process to identify a successor and integrate him or her into the company's management team. The company's Board fully supports the decision."
The new president will initially be focused on corporate strategy, acquisitions and other aspects of business development. Although the company has initiated the search process, the timetable for the succession process has not yet been determined. If the candidate meets the board's expectations, he will then succeed Fateh, who will shift to a new role as Executive Chairman. Lammot du Pont, who founded the company with Fateh and is now Chairman of the Board, will then become vice chairman.
"In the six years since our initial public offering, the company has accomplished as much or more than we had thought possible in terms of development and leasing," said du Pont. "Our data center portfolio is now 94 percent leased, and our data centers, tenant base and operations team are the envy of the industry, in no small part due to Hossein's leadership."
DuPont Fabros also said that it is selling $600 million in senior notes, which will be used to retire $550 million of existing senior notes paying 8.5 percent. The new notes will mature in 2021.