CyrusOne Inc. Announces Signing of Definitive Agreement to Divest Houston Assets

DALLAS–(BUSINESS WIRE)–CyrusOne Inc. (NASDAQ:CONE), a leading global data center REIT, today announced that it has entered into a definitive agreement with DataBank Holdings Ltd. (“DataBank”) for the sale of its four Houston data center assets. Under the terms of the agreement, DataBank will acquire the Houston West I, II and III and Houston Galleria data centers from CyrusOne. Additionally, CyrusOne will lease the Houston West III shell from DataBank to support a signed lease with a hyperscale customer in Q4 2021.

Total consideration for the transaction will be approximately $670 million, subject to a net working capital adjustment, with proceeds from the sale being used to fund future development projects. The third quarter 2021 annualized cash NOI represented by these properties, including future first year lease payments to be made by CyrusOne, totals $34.8 million, implying a transaction cap rate of 5 .19%.

“We are excited to implement our capital recycling initiative to fund our continued growth,” said David Ferdman, Interim President and CEO. “This divestiture further optimizes our portfolio as we redeploy capital into accretive developments in key markets with diversified large-scale and enterprise demand in the United States and Europe. We are delighted to partner with the DataBank team on this important transaction for our respective companies.

The sale is expected to be completed by the end of the first quarter of 2022, subject to customary closing conditions.

DH Capital, LLC and DLA Piper LLP respectively served as exclusive financial and legal advisors to CyrusOne on the transaction.

About Cyrus One

CyrusOne (NASDAQ: CONE) is a leading global REIT that designs, builds and operates more than 50 high-performance data centers around the world. The company provides mission-critical facilities that ensure the continued operation of IT infrastructure for approximately 1,000 customers, including approximately 200 Fortune 1000 companies.

A leader in hybrid and multi-cloud cloud deployments, CyrusOne offers colocation, hyperscale, and bespoke environments that help customers improve the strategic connection of their critical data infrastructure and support the achievement of sustainability goals. CyrusOne data centers offer world-class flexibility, allowing customers to modernize, simplify and respond quickly to changing demands. Combining exceptional financial strength with a broad global presence, CyrusOne offers its clients long-term stability and large-scale strategic advantage.

Safe Harbor Note

This press release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially. All statements, other than statements of historical fact, are statements that could be considered forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections regarding the industries in which the Company operates and on the beliefs and assumptions of the Company’s management. Words such as “expects”, “anticipates”, “predicts”, “projects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “continues” , “endeavours”, “endeavours”, “” “may”, variations of these words and similar expressions are intended to identify such forward-looking statements. In addition, any statements referring to projections of the Company’s future financial performance, the Company’s expected growth and trends in the Company’s business, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause the Company’s actual results to differ materially and adversely from those reflected in the statements. prospective. Further information about these risks and uncertainties and other potential factors that could affect the Company’s business and financial results are included in CyrusOne’s filings with the United States Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the latest periodic reports filed by the Company on Form 10-K and Form 10-Q and subsequent filings. The Company disclaims any obligation other than as required by law to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors or as new information, data or methods, future events or other changes. .

Comments are closed.