SAN FRANCISCO, July 30, 2019 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today it has entered into a definitive agreement to acquire a 34-acre land parcel in Hattersheim, approximately three miles from Frankfurt Airport, for the development of its next data center campus. The proposed project will be Digital Realty's third location in Frankfurt, building upon the rapid absorption of its existing campus in Sossenheim and supporting the company's investment in its coverage of Western Europe, including the recent appointment of Christian Zipp as Vice President, Sales with responsibility for Germany, Austria, Switzerland and the Netherlands.
The acquisition is subject to certain closing conditions, including zoning and planning permissions. Immediately upon closing, Digital Realty expects to commence development of a connected campus, which will support the next phase of the company's growth in Frankfurt with the delivery of up to 84 megawatts of IT capacity.
"Frankfurt is a critical connectivity hub for our customers in Europe, and this strategic land acquisition demonstrates our long-term commitment to securing our supply chain and supporting our customers' growth across the region," said Digital Realty Chief Executive Officer A. William Stein. "Looking ahead, we will continue to invest in opportunities to meet the growing demand for data center solutions across the region."
Jones Lang LaSalle is serving as Digital Realty's retained real estate advisor and White & Case is serving as Digital Realty's legal counsel on the acquisition.
Digital Realty operates a network of industry-leading data centers across Europe, located in Amsterdam, Dublin, Frankfurt, Geneva, London, Manchester and Paris.
About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Latin America, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products. www.digitalrealty.com. Follow Digital Realty on social media: LinkedIn, Twitter, Facebook, Instagram and YouTube
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Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the purchase and development of land near Frankfurt, the expected benefits and demand in the European market and our expansion plans. These risks and uncertainties include, among others, the following: reduced demand for data centers or decreases in information technology spending; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services; our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers; breaches of our obligations or restrictions under our contracts with our customers; our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties; the impact of current global and local economic, credit and market conditions; our inability to retain data center space that we lease or sublease from third parties; difficulty acquiring or operating properties in foreign jurisdictions; our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent acquisitions; our failure to successfully integrate and operate acquired or developed properties or businesses; difficulties in identifying properties to acquire and completing acquisitions; risks related to joint venture investments, including as a result of our lack of control of such investments; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital; financial market fluctuations and changes in foreign currency exchange rates; adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges; our inability to manage our growth effectively; losses in excess of our insurance coverage; environmental liabilities and risks related to natural disasters; our inability to comply with rules and regulations applicable to our company; our failure to maintain our status as a REIT for federal income tax purposes; our operating partnership's failure to qualify as a partnership for federal income tax purposes; restrictions on our ability to engage in certain business activities; and changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2018 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2019. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Digital Realty