SINGAPORE, Oct. 23, 2017 /PRNewswire/ -- Digital Realty
(NYSE: DLR), a leading global provider of data centre,
colocation and interconnection solutions, announced today it has
entered into a 50/50 joint venture with Mitsubishi Corporation to
provide data centre solutions in Japan. The new joint venture will
benefit from Mitsubishi Corporation's local enterprise expertise
and established data center presence in Tokyo, as well as Digital Realty's global
client base and industry-leading track record of data centre
operational excellence.
The joint venture will operate under the name MC Digital
Realty. Mitsubishi Corporation will contribute two existing
data centre facilities in the western Tokyo suburb of Mitaka, while Digital Realty
will contribute its recently completed data centre development
project in Osaka. The three seed assets are collectively
valued at approximately 40 billion Japanese
Yen, or approximately $350
million. The joint venture aims to build a meaningful
platform to serve the broader Japanese market, with the potential
to significantly expand its scope over the next several
years.
"We are delighted to be partnering with an institution of
Mitsubishi Corporation's global prestige and local expertise, and
to be establishing a presence in Tokyo," said A.
William Stein, Digital Realty's Chief Executive
Officer. "Japan is a highly
strategic country for Digital Realty's global data centre platform,
and this relationship with Mitsubishi Corporation represents a
major step towards strengthening our presence in Japan."
Digital Realty announced the opening of Digital Osaka 1, its
first data centre project in Japan, earlier this year. Digital Osaka
1 spans approximately 93,000 square feet, provides 7.6 megawatts of
IT capacity, and was fully leased prior to the official
opening. Concurrent with the opening of Digital Osaka 1,
Digital Realty also announced the acquisition of an adjacent land
parcel for the future development of a connected campus in
Osaka, which will support up to 27
megawatts of additional IT capacity upon completion.
"Japan is a developed market,
with a highly advanced technology sector that is expected to
experience rapid growth over the next several years, yet the local
data centre market remains highly fragmented with a shortage of
institutional quality data centre capacity," said Chris Kenney, Digital Realty's Senior Vice
President, International. "We see tremendous opportunity for
growth in the Asia Pacific region
over the next several years, and we expect the MC Digital Realty
joint venture will significantly enhance our ability to meet the
growing data centre demands of the Japanese market."
Digital Realty offers a full range of global data centre,
colocation and interconnection solutions, and currently owns and
operates 157 properties across 33 global metropolitan areas.
In the Asia Pacific region,
Digital Realty operates a network of industry-leading data centres
located in Singapore, Hong Kong, Osaka, Melbourne and Sydney.
About Digital Realty
Digital Realty supports the data
centre, colocation and interconnection strategies of more than
2,300 firms across its secure, network-rich portfolio of data
centres located throughout North
America, Europe,
Asia and Australia. Digital
Realty's clients include domestic and international companies of
all sizes, ranging from financial services, cloud and information
technology services, to manufacturing, energy, gaming, life
sciences and consumer products. For more information visit
www.digitalrealty.asia, follow us on Twitter at @DigitalAPAC or see
our blog at https://apac.digitalrealty.com.
About Mitsubishi Corporation
Mitsubishi Corporation
(MC) is a global integrated business enterprise that develops and
operates businesses across virtually every industry including
industrial finance, energy, metals, machinery, chemicals, and daily
living essentials.
MC's current activities have expanded far beyond its traditional
trading operations to include investments and business management
in diverse fields including natural resources development,
manufacturing of industrial goods, retail, new energy,
infrastructure, finance and new technology-related businesses.
With over 200 offices and subsidiaries in some 90 countries
worldwide and a network of over 1,200 group companies, MC employs a
multinational workforce of more than 68,000 people.
Safe Harbor Statement
This press release contains
forward-looking statements which are based on current expectations,
forecasts and assumptions that involve risks and uncertainties that
could cause actual outcomes and results to differ materially,
including statements related to the joint venture announcement
between Digital Realty and Mitsubishi Corporation. These
risks and uncertainties include, among others, the following: the
impact of current global economic, credit and market conditions;
current local economic conditions in the metropolitan areas in
which we operate; decreases in information technology spending,
including as a result of economic slowdowns or recession; adverse
economic or real estate developments in our industry or the
industry sectors that we sell to (including risks relating to
decreasing real estate valuations and impairment charges); our
dependence upon significant tenants; bankruptcy or insolvency of a
major tenant or a significant number of smaller tenants; defaults
on or non-renewal of leases by tenants; our failure to obtain
necessary debt and equity financing; risks associated with using
debt to fund our business activities, including re-financing and
interest rate risks, our failure to repay debt when due, adverse
changes in our credit ratings or our breach of covenants or other
terms contained in our loan facilities and agreements; financial
market fluctuations; changes in foreign currency exchange rates;
our inability to manage our growth effectively; difficulty
acquiring or operating properties in foreign jurisdictions; our
failure to successfully integrate and operate acquired or developed
properties or businesses; the suitability of our properties and
data center infrastructure, delays or disruptions in connectivity,
failure of our physical and information security infrastructure or
services or availability of power; risks related to joint venture
investments, including as a result of our lack of control of such
investments; delays or unexpected costs in development of
properties; decreased rental rates, increased operating costs or
increased vacancy rates; increased competition or available supply
of data center space; our inability to successfully develop and
lease new properties and development space; difficulties in
identifying properties to acquire and completing acquisitions; our
inability to acquire off-market properties; the impact of the
United Kingdom's referendum on
withdrawal from the European Union on global financial markets and
our business; our inability to comply with the rules and
regulations applicable to reporting companies; our failure to
maintain our status as a REIT; possible adverse changes to tax
laws; restrictions on our ability to engage in certain business
activities; environmental uncertainties and risks related to
natural disasters; losses in excess of our insurance coverage;
changes in foreign laws and regulations, including those related to
taxation and real estate ownership and operation; and changes in
local, state and federal regulatory requirements, including changes
in real estate and zoning laws and increases in real property tax
rates. For a further list and description of such risks and
uncertainties, see the reports and other filings by Digital Realty
with the U.S. Securities and Exchange Commission, including the
company's Annual Report on Form 10-K for the year ended
December 31, 2016 and Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2017 and June
30, 2017. The company disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
For Additional Information:
Omer M. Wilson
Senior Director of Marketing
Asia Pacific
Digital Realty
owilson@digitalrealty.com
+65 6505 3951
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SOURCE Digital Realty