Separately, Interxion has reached an agreement to acquire an expansion parcel, formerly known as the Neckermann property, within approximately one kilometre of the Hanauer Landstraße campus. The expansion parcel totals 107,000 square metres that will support the development of up to 180 megawatts of additional IT capacity and will be fully connected to the existing campus. The Neckermann property acquisition is expected to close in two stages, with final transfer of ownership in early 2021.
"These investments represent an important milestone on our global platform roadmap, enabling customers' digital transformation strategies while demonstrating our commitment to supporting their future growth on PlatformDIGITALTM," said Digital Realty Chief Executive Officer A. William Stein. "We believe we are creating significant value by combining the leasehold and freehold positions on one of the most highly connected campuses in Europe, while the assemblage of adjacent expansion capacity provides long-term certainty for the coverage, capacity and connectivity requirements to support our customers' digital ambitions."
The Hanauer Landstraße campus currently contains approximately 43,000 square metres on 6.5 hectares of land, 40% of which is leased to 21 customers with a weighted-average remaining lease term of approximately four years. At expiration, Interxion expects to redevelop the portion currently leased to third parties to build out additional data center capacity.
Interxion occupies more than half the campus across its nine data centres. Interxion employs state-of- the-art cooling techniques to support higher power density customer requirements while maintaining exceptional energy efficiency, and 100% renewable energy is available to customers throughout the campus.
"Interxion Frankfurt is one of the leading cloud and connectivity hubs in the world, with direct access to numerous leading global cloud platforms and more than 700 carriers and internet service providers," said David Ruberg, Chief Executive Officer of Interxion: A Digital Realty Company. "Acquiring the freehold to our existing campus as well as a sizable site for further expansion will enable customers to rapidly scale their digital transformation strategies by deploying critical infrastructure with a leading global data centre provider and joining a thriving community of interest."
The seller of the Hanauer Landstraße freehold was the open-ended real estate special alternate investment fund, BEOS Corporate Real Estate Fund Germany II, whose assets are managed by BEOS AG.
BNP Paribas Real Estate served as financial advisor on the Hanauer Landstraße transaction, while White & Case served as legal advisor.