Iron Mountain Announces UK Industrial Sale-Leaseback Transaction with ICG

Rhea-AI Summary

Iron Mountain (NYSE: IRM) has successfully sold five facilities to Intermediate Capital Group for approximately $178 million. This sale-leaseback transaction, spanning 550,000 square feet in the greater London area, allows Iron Mountain to maintain control of these properties under a twelve-year lease, with potential extensions up to 20 years. The proceeds will be reinvested in high-growth areas, notably in its data center business. The CFO highlighted the transaction's strategic fit within their capital recycling program, projecting nearly $140 million available for future investments.

Positive

• Generated approximately $178 million from the sale of five facilities.
• Proceeds to be reinvested in higher growth areas, particularly data centers.
• Maintains long-term control of properties through a twelve-year lease with extension options.

Negative

• None.

Iron Mountain (NYSE: IRM), the global leader in innovative storage and information management services, today announced that it has sold a portfolio of five facilities to Intermediate Capital Group (ICG), generating gross proceeds of approximately $178 million, based on current exchange rates. The transaction, totaling 550,000 square feet, is a sale-leaseback transaction with the properties located in the greater London area. Iron Mountain will remain in these facilities under an initial twelve-year lease term, with options to renew up to an additional 20 years.

This transaction is part of Iron Mountain’s ongoing capital recycling program, and Iron Mountain expects to utilize the proceeds to reinvest in higher growth areas of its business.

“With our strong development pipeline together with highly attractive market valuations for industrial assets, we are pleased to continue our capital recycling program,” said Barry Hytinen, executive vice president and CFO at Iron Mountain. “The sale-leaseback of these assets allows us to generate significant investable proceeds while essentially maintaining long-term control of the facilities. On a leverage neutral basis, we estimate this transaction will generate nearly $140 million of capital, which we intend to invest in higher growth areas, including our data center business.”

Chad Brown, Director at ICG said, “The Iron Mountain portfolio is a prime example of the mission critical real estate that ICG’s Sale and Leaseback fund is seeking to invest in. This represents the fund's third transaction in 2021 and second transaction in the UK, following the 2.94m sq ft forward funding of Jaguar Land Rovers new facility at Mercia Park, earlier this year.”

ICG was advised by their asset management partner Marchmont Investment Management and CBRE. Iron Mountain was advised by JLL.

About ICG

Intermediate Capital Group (ICG) provides capital to help companies grow. We are a global alternative asset manager with over 30 years' history, managing $56.2bn of assets in private debt, credit, and equity, principally in closed-end funds.

We develop long-term relationships with our business partners to deliver value for shareholders, clients, and employees, and use our position of influence to benefit the environment and society. We operate across four strategic asset classes: corporate, capital market, real asset, and secondary investments. In addition to growing existing strategies, we innovate and pioneer new strategies where the market opportunity exists.

ICG’s SLB strategy targets mission-critical real estate across the UK & Europe and has c. £500m of equity remaining to deploy. The profile of the Sierra portfolio clearly aligns with ICG’s investment objectives and would be a natural addition to the portfolio, which now totals over £1.15bn of GAV.

Notable recent transactions by the Fund include the sale & leaseback of Syngenta’s global Seeds research & development facility in the Netherlands (c.€100m) closed in March 2021 and the forward funding of a 2.94m sq ft, five unit distribution scheme single let to Jaguar Land Rover in January 2021 (c.£330m).

ICG is listed on the London Stock Exchange (ticker symbol: ICP).

Further details are available at: www.icgam.com.

You can follow ICG on LinkedIn.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM) is the global leader in innovative storage and information management services, storing and protecting billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Founded in 1951 and trusted by more than 225,000 customers worldwide, Iron Mountain helps customers CLIMB HIGHER™ to transform their businesses. Through a range of services including digital transformation, data centers, secure records storage, information management, secure destruction, and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.

To learn more about Iron Mountain, please visit: www.IronMountain.com and follow @IronMountain on Twitter and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210623005577/en/

FAQ

What is the recent transaction involving Iron Mountain (IRM) about?

Iron Mountain sold a portfolio of five facilities for approximately $178 million as part of a sale-leaseback arrangement.

How much gross proceeds did Iron Mountain generate from the sale?

Iron Mountain generated approximately $178 million from the sale of five facilities.

What does Iron Mountain plan to do with the proceeds from the sale?

The proceeds will be reinvested in higher growth areas of its business, including its data center segment.

How long is the lease term that Iron Mountain will maintain for the sold facilities?

Iron Mountain will lease the sold facilities for an initial term of twelve years, with options to renew for up to an additional 20 years.