Blackstone Real Estate and Corporate Office Properties Trust have closed its new data center shell joint venture. According to the terms of the deal, Blackstone has acquired a 90 percent stake in six data center shell properties valued at $203 million. And, COPT received approximately $84 million of equity value from the transaction for its 40 percent interest.
COLUMBIA, Md.–(BUSINESS WIRE)–Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) has completed the second and final close of its new joint venture with funds affiliated with Blackstone Real Estate (the “Blackstone Funds”), which was previously announced on November 2, 2020. The Blackstone Funds acquired a 90% interest in six data center shell properties that contain 979,000 square feet and were valued at $203 million. COPT received approximately $84 million of equity value from the transaction for its 40% interest. The remaining equity value was distributed to a prior investor who held a 50% interest in these assets. The completion of this transaction follows the Blackstone Funds’ earlier acquisition of a 90% interest in two of COPT’s wholly owned data shell properties valued at $90 million.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $174 billion of investor capital under management. Blackstone is one of the largest property owners in the world, owning and operating assets across every major geography and sector, including logistics, multifamily and single family housing, office, hospitality and retail. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone’s Core+ strategy invests in substantially stabilized real estate globally through regional open-ended funds focused on high-quality assets and Blackstone Real Estate Income Trust, Inc. (BREIT), a non-listed REIT that invests in U.S. income-generating assets. Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).
COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what it believes are growing, durable, priority missions (“Defense/IT Locations”). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of September 30, 2020, the Company derived 88% of its core portfolio annualized rental revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including 15 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 174 office and data center shell properties encompassed 20.2 million square feet and was 94.6% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.