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Digital Realty, consortium, among parties interested in CyrusOne: Bloomberg
Posted on Friday, 20 September 2019 09:56
CyrusOne, the listed real estate investment trust (REIT) focused on the data centre space, is racking up interest from the likes of rival Digital Realty Trust and a consortium comprising EQT Partners and Digital Colony Partner, sources told Bloomberg.
Just last month the news provider reported another party, this time consisting of KKR, Stonepeak Infrastructure Partners and I Squared Capital, was considering making a play for the company.
Sources, who declined to be named as the process is confidential, told Bloomberg discussions are under way and may or may not lead to an agreement.
The news provider noted CyrusOne started working with advisors to weigh options after receiving expressions of interest, most likely from a group of private infrastructure investors.
Shares in the REIT have risen by 49.2 per cent since the beginning of this calendar year to USD 74.30 and a market capitalisation of USD 8.63 billion yesterday.
Founded in 2001, CyrusOne’s sole material asset is its ownership of the working partnership units of CyrusOne LP, the owner, manager and developer of enterprise-class, carrier-neutral, multi-tenant and single-tenant data centres.
The Texan REIT’s purpose-built facilities have redundant power and cooling but are not network specific and enable client connectivity to a range of telecommunication carriers.
It currently has 49 locations in the US, the UK, Germany and Singapore and its 1,000 customers operate in industries ranging from information technology and financial service to energy and consumer goods.
CyrusOne believes the fundamentals for data centre real estate remain strong, as they are supported by trends that particularly favour such assets, according to the REIT’s report for the second quarter of 2019.
Factors include the exponential growth in global information e-commerce and demand for outsourcing of storage and cloud-based applications.
Bloomberg noted infrastructure managers are ramping up their exposure to the sector while data centre-focused REITs have been on the acquisition trail.
Just last December Digital Reality bought Brazilian player Ascenty for USD 1.80 billion while in October 2018 CyrusOne made a USD 11.90 million investment in exchange for a 10.0 per cent equity interest in ODATA Brasil and ODATA Colombia.
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