AcquisitionsJun 29, 2026, 05:31 PM
Digital Realty Acquires Blackstone's 64% JV Interest for $3.5B
AI Summary
Digital Realty Trust, Inc. announced an agreement to purchase Blackstone Inc.'s blended 64% interest in the Digital Carver Dulles 9 and Digital Carver Brickyard joint ventures for $3.5 billion. The consideration includes $1.231 billion in cash and $2.346 billion in non-voting common stock. This acquisition will make the joint ventures, which include three hyperscale data centers in Northern Virginia, wholly-owned subsidiaries and is expected to be accretive to Core FFO per share in 2027 and 2028. Additionally, Digital Realty acquired 1,440 acres of land near Kansas City for $377.6 million and increased its interest in the Teraco joint venture.
Key Highlights
- Digital Realty to acquire Blackstone's 64% interest in Digital Carver Dulles 9 and Brickyard JVs.
- Total consideration for Blackstone's interest is $3.5 billion.
- Payment includes $1.231 billion in cash and $2.346 billion in non-voting common stock.
- Acquisition covers three hyperscale data centers in Northern Virginia totaling 288 MW IT capacity.
- Gross value of the assets is $7.8 billion, reflecting an initial stabilized cap rate over 6.5%.
- Expected to be accretive to Core FFO per share in 2027 and 2028.
- Acquired 1,440 acres of land near Kansas City for $377.6 million cash and 517,475 common units.
- Agreed to issue 3,425,031 shares to increase interest in Teraco joint venture.
Price Impact
More from DLR