Digital Realty is the world's largest wholesale colocation services and data center solutions provider with over 130 secure locations globally. GI Partners created the company in 2004 by consolidating a portfolio of 21 stand-alone data center assets and taking the company public in 2004. The properties were acquired through bankruptcy auctions and from distressed companies at 20 – 40% discount to replacement cost. Through bringing in new capital for refurbishment and leasing initiatives, GI was able to stabilize operations and increase the occupancy of the portfolio. GI recognized the premium the public market assigned to an operating platform over a portfolio of stand-alone assets and as a result, acquired and consolidated a total of 21 properties into one company, recruited a seasoned management team, and took the company public in November 2004.
Investment Details
- Investment Date: February 2001 to March 2007
- Status: Realized
- GI Role: Sole Investor
Real Estate Initiatives
- Operational orientation calibrated to investment objectives
- Effective management of capital structure
- Active asset and platform management
- Recruitment and retention of exceptional real estate talent
Exit
GI Partners sold its DLR shares over time and fully exited the investment in March 2007.
Headquarters
San Francisco, CA
