March 21, 2018

ASB Sells Three Remaining Data Centers to IPI Partners

Follows Recent Agreement to Sell Infomart Dallas for $800 Million to Equinix

WASHINGTON, DC – Following on its announced $800 million agreement to sell Infomart Dallas to Equinix (Nasdaq: EQIX), ASB Real Estate Investments (ASB) today reported a separate transaction—the completed all-cash sale of its three remaining data centers and their operations to an affiliate of IPI Data Center Partners Management, LLC (IPI Partners). Pricing details of the transaction were not disclosed. The three assets total 665,000 square feet of space and are located in San Jose, CA; Hillsboro, OR; and Ashburn, VA. ASB agreed to the sale on behalf of its Allegiance Fund, a $7.4 billion core real estate investment vehicle.

An early institutional investor in data center properties, ASB purchased Infomart Dallas in 2005, expanding its capacity to 110 carriers with major tenants that include Equinix, Bank of America and Verizon. The company added to its data center portfolio in three separate acquisitions—Infomart Silicon Valley in 2008; Infomart Portland, located in Hillsboro, OR, in 2011; and Infomart Ashburn, located in Ashburn, VA, in 2014.

Last month ASB announced a definitive agreement to sell Infomart Dallas, the iconic 1.6-million-square-foot data center and office complex, to Equinix, the global interconnection and data center company, for $800 million. The transaction consideration will consist of cash and debt securities, which will be paid out to the Allegiance Fund over a 36-month period following closing, which is expected by mid-year 2018.

Robert Bellinger, ASB Real Estate Investments’ President and CEO, said: “Our data center investments proved extremely timely and profitable for our fund clients. As the market for data centers has expanded and investor demand has increased, we strategically decided to capture a singular disposition opportunity to lock-in gains and have been able to negotiate two significant transactions contemporaneously. Going forward, we will retain a stake in the data center sector for the next three years through the Equinix debt securities and will have the opportunity to rebalance and further strengthen our diversified real estate portfolio.”

ASB was advised by DH Capital, as its exclusive financial advisor, and DLA Piper LLP, as legal advisor on the transaction.

About ASB Real Estate Investments
ASB Real Estate Investments (ASB), a division of ASB Capital Management, LLC, is a leading U.S. real estate investment management firm with $7.7 billion* in gross assets under management for over 340 institutional clients. Headquartered in Washington DC, ASB invests in major urban markets across the country, concentrating in office, multifamily, retail and industrial properties. ASB manages the ASB Allegiance Real Estate Fund, its sole vehicle for core investing; the ASB Meridian Real Estate Funds, a series of low-leverage value creation vehicles; and a development separate account.

*as of December 31, 2017 

The information provided in the release does not constitute an offer to sell or buy securities or the solicitation of an offer to sell or buy securities.