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.
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