Interxion Acquires Freehold To Highly Connected Frankfurt Campus

Rhea-AI Summary

On July 13, 2020, Digital Realty announced that its subsidiary, Interxion, acquired the freehold of its Hanauer Landstraße campus in Frankfurt, which includes nine data centers and the German headquarters. This acquisition consolidates Interxion's control over 15 data centers at this strategic location. Additionally, Interxion agreed to purchase an adjacent 107,000-square-meter expansion parcel to develop up to 180 megawatts of IT capacity. These investments aim to enhance digital transformation capabilities and strengthen Interxion's market position in Europe.

Positive

• Acquisition of freehold enhances control over a key strategic location, consolidating assets at the Frankfurt campus.
• Expansion parcel acquisition supports development of 180 megawatts of additional IT capacity, increasing future revenue potential.

Negative

• None.

AMSTERDAM, July 13, 2020 /PRNewswire/ -- Interxion, a leading European provider of carrier- and cloud-neutral colocation data centre solutions and a Digital Realty (NYSE: DLR) company, has acquired the freehold to the land under its Hanauer Landstraße campus in Frankfurt.  The site includes nine Interxion data centres previously subject to leasehold agreements with approximately nine years of remaining lease term, along with Interxion's German headquarters office as well as several buildings currently leased to other customers.  Interxion now owns the freehold to all 15 data centres on its Frankfurt campus. 

Separately, Interxion has reached an agreement to acquire an expansion parcel, formerly known as the Neckermann property, within approximately one kilometre of the Hanauer Landstraße campus.  The expansion parcel totals 107,000 square metres that will support the development of up to 180 megawatts of additional IT capacity and will be fully connected to the existing campus.  The Neckermann property acquisition is expected to close in two stages, with final transfer of ownership in early 2021. 

"These investments represent an important milestone on our global platform roadmap, enabling customers' digital transformation strategies while demonstrating our commitment to supporting their future growth on PlatformDIGITAL™," said Digital Realty Chief Executive Officer A. William Stein.  "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." 

The Hanauer Landstraße campus currently contains approximately 43,000 square metres on 6.5 hectares of land, 40% of which is leased to 21 customers with a weighted-average remaining lease term of approximately four years.  At expiration, Interxion expects to redevelop the portion currently leased to third parties to build out additional data center capacity. 

Interxion occupies more than half the campus across its nine data centres.  Interxion employs state-of-the-art cooling techniques to support higher power density customer requirements while maintaining exceptional energy efficiency, and 100% renewable energy is available to customers throughout the campus. 

"Interxion Frankfurt is one of the leading cloud and connectivity hubs in the world, with direct access to numerous leading global cloud platforms and more than 700 carriers and internet service providers," said David Ruberg, Chief Executive Officer of Interxion: A Digital Realty Company.  "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 centre provider and joining a thriving community of interest."  

The seller of the Hanauer Landstraße freehold was the open-ended real estate special alternative investment fund, BEOS Corporate Real Estate Fund Germany II, whose assets are managed by BEOS AG.  BNP Paribas Real Estate served as financial advisor on the Hanauer Landstraße transaction, while White & Case served as legal advisor.  

About Interxion
Interxion: A Digital Realty Company is a leading provider of carrier- and cloud-neutral data centre solutions across EMEA, the Americas and APAC.  With over 700 connectivity providers, Interxion has created connectivity and cloud content hubs that foster growing customer communities of interest reaching markets across six continents, 21 countries and 44 metros within 275 data centres.  For more information, please visit www.interxion.com. 

About Digital Realty
Digital Realty (NYSE: DLR) supports the data centre, colocation, and interconnection strategies of customers across the Americas, EMEA and APAC, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products.  To learn more about Digital Realty, please visit digitalrealty.com or follow us on -1%26h%3D3866077685%26u%3Dhttps%253A%252F%252Fwww.linkedin.com%252Fcompany%252Fdigitalrealty%252F%26a%3DLinkedIn&a=LinkedIn" rel="nofollow">LinkedIn and -1%26h%3D2933170450%26u%3Dhttps%253A%252F%252Ftwitter.com%252Fdigitalrealty%26a%3DTwitter&a=Twitter" rel="nofollow">Twitter. 

Media and Industry Analyst Inquiries
Marc Musgrove
Digital Realty
(415) 508-2812
mmusgrove@digitalrealty.com

William Reynolds
Teneo
+44 07876 214356
digitalrealty@teneobluerubicon.com

Investor Relations
John J. Stewart / Jim Huseby
Digital Realty
(415) 738-6500
investorrelations@digitalrealty.com

Forward-looking Statements
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to: Interxion's freehold acquisition in Frankfurt, including remaining lease terms and redevelopment plans; Interxion's agreement to purchase additional land in Frankfurt, including timing to complete the acquisition, expected IT load and square metres; PlatformDIGITAL™; and cloud and connectivity in Frankfurt.  For a list and description of such risks and uncertainties, see the company's reports and other filings with the U.S. Securities and Exchange Commission.  The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

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SOURCE Digital Realty

FAQ

What did Digital Realty announce on July 13, 2020 regarding its operations in Frankfurt?

Digital Realty announced that its subsidiary Interxion acquired the freehold to its Hanauer Landstraße campus in Frankfurt, consolidating its control over the data centers there.

How does the acquisition of the Hanauer Landstraße campus impact Digital Realty's operations?

The acquisition enhances Digital Realty's control of strategic assets and supports their customers' digital transformation strategies by connecting them to a highly connected data center hub.

What is the expected benefit of the newly acquired expansion parcel near the Frankfurt campus?

The expansion parcel will allow for the development of up to 180 megawatts of additional IT capacity, enhancing service offerings for customers.

Which company sold the freehold of the Hanauer Landstraße campus to Interxion?

The freehold was sold by BEOS Corporate Real Estate Fund Germany II, managed by BEOS AG.