Press Release Details

Digital Realty Trust, Inc. Acquires Datacenters in New York City and Northern Virginia From AboveNet

October 02, 2006

SAN FRANCISCO, Oct. 2 /PRNewswire-FirstCall/ -- Digital Realty Trust, Inc. (NYSE: DLR), the leading owner and manager of corporate datacenters and Internet gateways, has acquired the East Coast datacenter business of AboveNet Inc., (http://www.above.net), a premier metro access provider of custom fiber solutions. The purchase price is $40 million. The transaction consists of the purchase of one fee simple interest property in Reston, Virginia and two leaseholds located in New York City and Vienna, Virginia. The purchase includes approximately 120,000 square feet of datacenter facilities in three buildings containing approximately 58,000 square feet of turn-key datacenter space.

Following are details about the three datacenters involved in this transaction:

    -- The datacenter facility at 1807 Michael Faraday Court in Reston, has a
       total square footage of 19,237 square feet and contains 11,541 square
       feet of Turn-Key Datacenter space.  The underlying property and its
       improvements are being acquired at this site.

    -- The datacenter facility located at 111 8th Avenue in New York City has
       a total square footage of 83,137 square feet and contains 35,463 square
       feet of Turn-Key Datacenter space that will be operated by Digital
       Realty Trust.  The improvements are being acquired at this site which
       is subject to a lease.

    -- The datacenter facility located at 8100 Boone Boulevard in Vienna has a
       total square footage of 17,015 square feet and contains 10,935 square
       feet of Turn-Key Datacenter space that will be operated by Digital
       Realty Trust.  The improvements are being acquired at this site which
       is subject to a lease.

"The addition to our portfolio of these outstanding datacenter facilities in New York City and Northern Virginia expands our footprint in two key markets, which are experiencing very strong demand for datacenter space. As a result of this transaction, Digital Realty Trust now operates on behalf of its customers over 500,000 square feet of datacenter space. It also gives us an opportunity to work closely with AboveNet, who shares our commitment to customer service," said Michael F. Foust, Chief Executive Officer of Digital Realty Trust. "We look forward to working with each of the customers in 111 8th Avenue, 1807 Michael Faraday Court and 8100 Boone Boulevard to ensure that their needs are met during this transition process and going forward. Digital Realty Trust strives to be a true partner to each of our customers, by working diligently to support their technical needs and business goals not only today but also over the long-term as those needs and goals evolve."

Digital Realty Trust and AboveNet have developed a comprehensive transition plan for the facilities that is designed to ensure that customers experience no interruption in service and have continuity in both operational and administrative processes regarding their space in the buildings.

"This news is very positive for our customers in 111 8th Avenue, 1807 Michael Faraday Court and 8100 Boone Boulevard because Digital Realty Trust has such a strong reputation for operational excellence, its focus on customer service and its commitment to investing in the properties it owns. Customers will have two great companies working together to meet their needs: Customers will continue to work with AboveNet to meet their IP network services needs, and they will work with Digital Realty Trust's world-class operations team for datacenter colocation services to customers in these facilities, including space, cabinets, power, and cross-connects," said Bill LaPerch, President and CEO of AboveNet.

Going forward Digital Realty Trust plans to put in place a number of enhancements that will bring added benefits to customers' tenancy in 111 8th Avenue, 1807 Michael Faraday Court and 8100 Boone Boulevard. These enhancements will include implementation of Digital Realty Trust's industry-leading management policies for critical facility operations and construction, which will further enhance the security, reliability and performance of mission critical systems housed in the facility. Another key enhancement will be the implementation of the next-generation building management system (BMS) and security system that Digital Realty Trust is deploying across its entire portfolio of buildings. Digital Realty Trust will also deploy its advanced Security Access Control System (SACS) and a Computerized Maintenance Management System (CMMS), which allow tenants to utilize a Web-based dashboard for monitoring and managing all aspects of their installations -- from energy usage to security controls to performance metrics -- across all the properties where they have equipment. These investments in each building will provide customers with enhanced building management capabilities that deliver significant benefits in areas such as energy efficiency, operational costs and ease of management.

About AboveNet, Inc.

AboveNet, Inc. provides fiber connectivity solutions for businesses. Its private optical network delivers key network and IP services in and between 14 top U.S. metro markets and London. AboveNet's network is widely used in demanding markets such as financial services, where the majority of top investment banks and 5 of the top 10 U.S. banks rely on AboveNet for mission critical services. For more information, visit http://www.above.net.

About Digital Realty Trust, Inc.

Digital Realty Trust, Inc. owns, acquires, repositions and manages technology-related real estate. Digital Realty Trust's 54 properties contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants. Comprising approximately 10.8 million rentable square feet, including 1.4 million square feet of space held for redevelopment, Digital Realty Trust's portfolio is located in 24 markets throughout North America and Europe. For additional information, please visit the Digital Realty Trust's website at http://www.digitalrealtytrust.com.

This press release contains forward-looking statements based on current expectations, forecasts and assumptions, including current expectations, forecasts and assumptions related to our expansion plans, the closing date of the transaction and the implementation of policies and building automation systems. These current expectations, forecasts and assumptions involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties for Digital Realty Trust include adverse economic or real estate developments in our markets or the technology industry; general economic conditions; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; failure to obtain necessary outside financing; decreased rental rates or increased vacancy rates; difficulties in identifying properties to acquire and completing acquisitions; failure to successfully operate acquired properties and operations; our relatively limited operating history in Europe; failure of acquired properties to perform as expected; failure to deliver secure facilities or the power required by our tenants; failure to maintain the Company's status as a REIT; environmental uncertainties and risks related to natural disasters; financial market fluctuations; changes in foreign currency exchange rates; and changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by Digital Realty Trust with the Securities and Exchange Commission. Digital Realty Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For Additional Information:
    A. William Stein
    Chief Financial Officer and
    Chief Investment Officer
    415-738-6500

    Pamela Matthews
    Investor/Analyst Information
    415-738-6532

    Chris Crosby
    Business Contact
    214-231-2491

    Rich Miller
    Media Contact
    415-462-5633

SOURCE Digital Realty Trust, Inc.

Contact: A. William Stein, Chief Financial Officer and Chief Investment Officer, +1-415-738-6500, Pamela Matthews, Investor/Analyst Information, +1-415-738-6532, both of Digital Realty Trust, Inc.; Chris Crosby, Business Contact, +1-214-231-2491, Rich Miller, Media Contact, +1-415-462-5633, both for Digital Realty Trust, Inc.
Categories: Press Releases