COPT announces $293m data centre JV with Blackstone

COPT announces $293m data centre JV with Blackstone

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Corporate Office Properties Trust (COPT) has formed new joint ventures with funds affiliated with Blackstone Real Estate.

The new joint ventures are acquiring interests in eight single-tenant, data centre shell properties totalling 1.3 million square feet and valued at $293 million.

“We are very pleased to expand our relationship with Blackstone,” said Stephen E. Budorick, president & chief executive officer at COPT.

“These transactions further confirm the value of our portfolio of strategically located data centre shell properties and the value our development platform adds for shareholders

Blackstone Real Estate recently closed a transaction for a 90% interest in two of COPT’s wholly owned data centre shell properties valued at $90 million.

In addition, Blackstone Real Estate has also signed an agreement to acquire a 90% interest in six other data centre shell properties partially owned by COPT, and that transaction is expected to close before the end of 2020.

“We believe data centres will continue to benefit from strong secular tailwinds, including immense demand growth as internet traffic and the use of cloud services continue to rise,” added Tyler Henritze, head of acquisitions Americas for Blackstone Real Estate.

“These transactions are attractive opportunities to invest in high-quality powered shell warehouses in the premier market globally. We have an excellent partner in COPT and look forward to continuing to build our relationship over the long-term.”

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