Key Takeaways
- • Digital Realty sold a portfolio of 11 European data centers to Ascendas Reit for €569 million (approximately US$680 million), with the transaction signed and closed on March 17, 2021.
- • The divested portfolio is projected to generate €36.4 million (approximately US$43.5 million) in 2021 net operating income, representing a material recurring revenue stream for the buyer.
- • Ascendas Reit, a CapitaLand-sponsored REIT listed on the Singapore Exchange, acquired the multi-jurisdictional portfolio, reinforcing data center infrastructure as a core institutional real estate asset class.
- • White & Case led the transaction advisory with a 14-person team across London, Paris, and Brussels offices, coordinated by partner James Dodsworth, supported by external local counsel on BVI, Jersey, Isle of Man, Netherlands, and Swiss law matters.
- • The deal underscores ongoing institutional investor appetite for stabilized, income-producing European data center assets amid accelerating cloud adoption and digital infrastructure demand.
Summary
Digital Realty, a New York Stock Exchange-listed global provider of cloud- and carrier-neutral data center solutions, completed the sale of a 11-property European data center portfolio to Ascendas Reit, a Singapore Exchange-listed REIT sponsored by CapitaLand, for €569 million (approximately US$680 million). The transaction closed on March 17, 2021, marking a significant portfolio divestiture for the seller and a strategic acquisition for the Asia-Pacific focused buyer.
The divested portfolio is expected to contribute €36.4 million in net operating income during 2021, translating to approximately US$43.5 million in annualized recurring revenue. This metric indicates a stabilized, income-producing asset base with predictable cash flow characteristics—critical factors for REIT acquisitions and institutional investor underwriting.
White & Case, advising Digital Realty as legal counsel, deployed a substantial deal team spanning three jurisdictions. Partner James Dodsworth (London) led the engagement, supported by fellow London-based partners James Pullen, James Johnson, Will Smith, Nicholas Greenacre, and Lindsey Canning. Additional coverage included Paris-based partners Brice Engel and Estelle Philippi, Brussels-based local partner Thomas Glauden, and nine associates across London and Brussels. External local counsel handled BVI, Jersey, Isle of Man, Netherlands, and Swiss law matters, reflecting the multi-jurisdictional complexity of the portfolio structure.
According to Dodsworth, the transaction exemplifies White & Case's sector expertise in large, cross-border data center transactions. "Data Centers continue to be a pillar asset class in the real estate sector," Dodsworth noted, positioning the deal within a broader institutional trend toward digital infrastructure consolidation. The portfolio sale aligns with Digital Realty's capital allocation strategy while demonstrating sustained institutional demand for stabilized European data center assets among Asia-Pacific acquirers.
The divested portfolio is expected to contribute €36.4 million in net operating income during 2021, translating to approximately US$43.5 million in annualized recurring revenue. This metric indicates a stabilized, income-producing asset base with predictable cash flow characteristics—critical factors for REIT acquisitions and institutional investor underwriting.
White & Case, advising Digital Realty as legal counsel, deployed a substantial deal team spanning three jurisdictions. Partner James Dodsworth (London) led the engagement, supported by fellow London-based partners James Pullen, James Johnson, Will Smith, Nicholas Greenacre, and Lindsey Canning. Additional coverage included Paris-based partners Brice Engel and Estelle Philippi, Brussels-based local partner Thomas Glauden, and nine associates across London and Brussels. External local counsel handled BVI, Jersey, Isle of Man, Netherlands, and Swiss law matters, reflecting the multi-jurisdictional complexity of the portfolio structure.
According to Dodsworth, the transaction exemplifies White & Case's sector expertise in large, cross-border data center transactions. "Data Centers continue to be a pillar asset class in the real estate sector," Dodsworth noted, positioning the deal within a broader institutional trend toward digital infrastructure consolidation. The portfolio sale aligns with Digital Realty's capital allocation strategy while demonstrating sustained institutional demand for stabilized European data center assets among Asia-Pacific acquirers.
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