Digital Realty Trust
Dates of Investment: January 2002 - September 2004
GI Role: Sole Investor with 100% ownership of the assets prior to IPO
Overview
Digital Realty Trust, Inc. (NYSE: DLR) (“DLR”) is a real estate investment trust (REIT) that acquires, repositions and manages distressed web hosting facilities and key nodes of the internet backbone used by Fortune 2000 companies and internet enterprises. As a public company, DLR continues to capitalize on the growing trend of telecom companies disposing of their real estate holdings and the growing demand from internet and Fortune 2000 enterprises for data centers and outsourced back-up and recovery facilities.
Strategy
GI Partners executed a buy-and-build strategy in the technology infrastructure sector by acquiring 21 direct asset investments. An operating entity was then created by contributing the asset portfolio of 21 facilities and adding a management team. Through the completion of an initial public offering, the illiquidity risk of each individual asset was eliminated by monetizing the assets in a REIT structure.
Exit
GI Partners created and took DLR public in November 2004. The investment was fully exited as of March 2007. Rick Magnuson still serves as Chairman of the Board.
Dates of Investment: January 2002 - September 2004
GI Role: Sole Investor with 100% ownership of the assets prior to IPO
Overview
Digital Realty Trust, Inc. (NYSE: DLR) (“DLR”) is a real estate investment trust (REIT) that acquires, repositions and manages distressed web hosting facilities and key nodes of the internet backbone used by Fortune 2000 companies and internet enterprises. As a public company, DLR continues to capitalize on the growing trend of telecom companies disposing of their real estate holdings and the growing demand from internet and Fortune 2000 enterprises for data centers and outsourced back-up and recovery facilities.
Strategy
GI Partners executed a buy-and-build strategy in the technology infrastructure sector by acquiring 21 direct asset investments. An operating entity was then created by contributing the asset portfolio of 21 facilities and adding a management team. Through the completion of an initial public offering, the illiquidity risk of each individual asset was eliminated by monetizing the assets in a REIT structure.
Exit
GI Partners created and took DLR public in November 2004. The investment was fully exited as of March 2007. Rick Magnuson still serves as Chairman of the Board.
Copyright © 2010 GI Partners. All Rights Reserved
