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(WEB HOST INDUSTRY REVIEW) -- Data center operator Digital Realty Trust (www.digitalrealtytrust.com) announced last week it plans to acquire three data center properties totalling 550,000 square feet in Massachusetts and Connecticut for $375 million, according to a report by Data Center Knowledge.
DRT also recently announced that it acquired two fully leased data center properties and a 10.73 acre site in Northern Virginia for $63.3 million.
By purchasing these properties from Sentinel Data Centers, Digital Realty will expand its footprint in the Boston market, where its three existing properties are currently fully leased.
The company said it is also considering selling up to $400 million in stock through equity distribution agreements with Citigroup, Merrill Lynch, and Credit Suisse, which will be sold under a shelf registration agreement filed with the SEC in May 2009.
Under a shelf registration, a company may sell securities in one or more separate offerings with the size, price and terms to be determined at the time of sale.
DRT will use these additional funds to manage its borrowings in its ongoing acquiring of leased data center properties.
According to the SEC filing, DRT entered into definitive purchase agreements on December 24th to acquire 55 Middlesex Turnpike in Bedford, Massachusetts, a 100 percent condominium interest that represents 87.5 percent of the square footage of 128 First Avenue, Needham, Massachusetts, and 60-80 Merritt Boulevard, Trumbull, Connecticut.
The company said the properties have been updated to "modern data center standards" within the last four years.
The buildings are leased to 35 tenants totaling more than 306,000 square feet, which accounts for 98 percent of the buildings' leasable space. The leases account for annualized rent of about $40 million, said DRT.
The company plans to fund the acquisition from its revolving credit facility, and expects the deal to close by January 15.
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