ASB Real Estate Investments has sold Infomart Dallas, a data center and office complex, to Equinix Inc. The price of the acquisition was $800 million. DH Capital was financial adviser to ASB on the deal with DLA Piper LLP providing legal advice.
Washington, DC — April 3, 2018 — ASB Real Estate Investments (ASB) announced today the completion of the previously-announced sale of Infomart Dallas, the iconic 1.6 million-square-foot data center and office complex, to Equinix Inc., the global interconnection and data center company, for $800 million. The transaction consideration consisted of cash and debt securities, which will be paid out to ASB over a 36-month period following closing.
ASB made the sale on behalf of its Allegiance Fund, a $7.4 billion core real estate investment vehicle. ASB Real Estate Investments was advised by DH Capital, as its exclusive financial advisor, and DLA Piper LLP, as legal advisor on the transaction.
Last month, ASB sold three other data centers, totaling 665,000 square feet of space, and their operations to an affiliate of IPI Data Center Partners Management, LLC. Those facilities are located in San Jose, CA; Hillsboro, OR; and Ashburn, VA. No sales price was disclosed at the request of the buyer.
An early institutional investor in data center properties, ASB purchased Infomart Dallas in 2005, expanding its capacity to 110 carriers with major tenants that include Equinix, Bank of America and Verizon. The company purchased its three other data centers in separate transactions between 2008 and 2014.
Robert Bellinger, ASB Real Estate Investments’ President and CEO, said: “ASB and our clients have realized significant investment gains from our early entry into data center investments and now we are focused on redeploying proceeds to take advantage of current market opportunities in other real estate sectors to meet our long-term core performance objectives. The structured payout of the Equinix transaction maintains a stake in data center investments for at least three years and sets an orderly course for reallocating the capital.”
About ASB Real Estate Investments
ASB Real Estate Investments (ASB), a division of ASB Capital Management, LLC, is a leading U.S. real estate investment management firm with $7.7 billion* in gross assets under management for over 340 institutional clients. Headquartered in Washington DC, ASB invests in major urban markets across the country, concentrating in office, multifamily, retail and industrial properties. ASB manages the ASB Allegiance Real Estate Fund, its sole vehicle for core investing; the ASB Meridian Real Estate Funds, a series of low-leverage value creation vehicles; and a development separate account. For more information about the company, visit www.asbrealestate.com.
*As of 12/31/17