Digital realty closes $1 billion joint venture transaction with mapletree

Digital realty announced it has closed the previously announced joint venture with mapletree investments and mapletree industrial trust (together "mapletree") on three existing turn-key flex® data centers located in ashburn, virginia. the transaction values the three fully stabilized hyper-scale facilities at approximately $1.0 billion. the three facilities are fully leased and are expected to generate 2020 cash net operating income of approximately $61 million, representing a 6.0% cap rate. digital realty is retaining a 20% ownership interest in the joint venture, and mapletree has closed on the acquisition of the remaining 80% stake for approximately $811 million. digital realty will continue to operate and manage these facilities, and the joint venture transaction will be completely seamless from a customer perspective. the second tranche of the mapletree transaction, the outright sale of 10 fully-leased powered base building® properties for $557 million, is expected to close in early 2020. citigroup served as lead financial advisor to digital realty, along with cbre and park hill who served as co-advisors. latham & watkins and mayer brown served as digital realty's legal advisors.
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