Digital Realty Trust, Inc. (DLR) announced that it entered into a definitive share sale and purchase agreement to acquire a three-property data center portfolio located in the greater London area, referred to as the Sentrum Portfolio. The purchase price of the Sentrum Portfolio will be approximately 715.9 million pounds Sterling.
The Sentrum Portfolio comprises approximately 761 thousand square feet across three data centers located in Woking, Watford and Croydon.
Digital Realty Trust expects to fund the purchase price and related earn-out payments with available cash, borrowings under the company's global revolving credit facility, a bridge loan facility and/or the sale of debt or equity securities.
"We expect this transaction to be accretive to our 2012 Core FFO on a diluted per share and unit basis upon closing, excluding one time acquisition and financing costs, and plan to provide updated guidance for the year in our second quarter 2012 earnings announcement," said William Stein, CFO and Chief Investment Officer of Digital Realty.
The acquisition is expected to close on or about July 31, 2012 and may be shortened or deferred in limited circumstances.
Separately, the company said it plans to sell 8.25 million shares of its common stock in an underwritten public offering.
Digital Realty also plans to grant the underwriters an option to purchase up to an additional 1.2 million shares of common stock.
Digital Realty intends to contribute the net proceeds from this offering to its operating partnership, Digital Realty Trust, L.P. Digital Realty Trust, L.P. plans to use the net proceeds from the offering to fund a portion of the purchase price for the acquisition of a three-property data center portfolio located in the greater London area, referred to as the Sentrum Portfolio, or to temporarily repay borrowings under its global revolving credit facility, to acquire additional properties, to fund development and redevelopment opportunities, for general working capital purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or preferred securities, or a combination of the foregoing.
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