CyrusOne Inc. Announces Execution of Definitive Agreement to Divest Houston Assets
January 19 2022 - 8:00AM
Business Wire
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT,
announced today 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 back from DataBank the Houston West III shell to support a
lease signed with a hyperscale customer in the fourth quarter of
2021.
Total consideration for the transaction will be approximately
$670 million, subject to a net working capital adjustment, with
proceeds from the sale used to fund future development projects.
The third quarter 2021 annualized run-rate cash NOI represented by
these properties, including the future first year lease payments
that will be made by CyrusOne, aggregate $34.8 million, implying a
transaction cap rate of 5.19%.
“We are excited to execute on our capital recycling initiative
to fund our continued growth,” said David Ferdman, Interim
President & Chief Executive Officer. “This divestiture further
optimizes our portfolio as we redeploy capital into accretive
developments across core markets with diverse hyperscale and
enterprise demand in the U.S. and Europe. We are pleased to partner
with the DataBank team on this important transaction for our
respective companies.”
The divestiture is expected to close by the end of the first
quarter of 2022, subject to customary closing conditions.
DH Capital, LLC and DLA Piper LLP served as CyrusOne’s exclusive
financial and legal advisors, respectively, on the transaction.
About CyrusOne
CyrusOne (NASDAQ: CONE) is a premier global REIT specializing in
design, construction and operation of more than 50 high-performance
data centers worldwide. 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-cloud and multi-cloud deployments, CyrusOne
offers colocation, hyperscale, and build-to-suit environments that
help customers enhance the strategic connection of their essential
data infrastructure and supporting achievement of sustainability
goals. CyrusOne data centers offer world-class flexibility,
enabling clients to modernize, simplify, and rapidly respond to
changing demand. Combining exceptional financial strength with a
broad global footprint, CyrusOne provides customers with long-term
stability and strategic advantage at scale.
Safe Harbor Note
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. All statements, other than
statements of historical facts, are statements that could be deemed
forward-looking statements. These statements are based on current
expectations, estimates, forecasts, and projections about the
industries in which the Company operates and the beliefs and
assumptions of the Company’s management. Words such as “expects,”
“anticipates,” “predicts,” “projects,” “intends,” “plans,”
“believes,” “seeks,” “estimates,” “continues,” “endeavors,”
“strives,” “may,” variations of such words and similar expressions
are intended to identify such forward-looking statements. In
addition, any statements that refer to projections of the Company’s
future financial performance, the Company’s anticipated growth and
trends in the Company’s businesses, and other characterizations of
future events or circumstances are forward-looking statements.
Readers are cautioned 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
forward-looking statements. More information on these risks and
uncertainties and other potential factors that could affect the
Company’s business and financial results is included in CyrusOne’s
filings with the U.S. Securities and Exchange Commission, including
in the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of the
Company’s most recently filed periodic reports 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 statement to reflect changes in
underlying assumptions or factors or for new information, data or
methods, future events or other changes.
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version on businesswire.com: https://www.businesswire.com/news/home/20220118006273/en/
Investor Relations Michael Schafer Senior Vice President,
Finance 972-350-0060 investorrelations@cyrusone.com
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