Iron Mountain Announces Industrial Sale-Leaseback Transaction with Blackstone Real Estate Income Trust
December 03 2020 - 7:30AM
Business Wire
BREIT to acquire 13 industrial facilities for
$358 million
Iron Mountain (NYSE: IRM), the storage and information
management services company enabling digital transformation, today
announced that it has sold a portfolio of 13 industrial facilities
to Blackstone Real Estate Income Trust, Inc. (“BREIT”), generating
gross proceeds of $358 million. The transaction, totaling 2.1
million square feet, is a sale-leaseback transaction with the
properties located predominantly in California, northern New Jersey
and the Lehigh Valley. Iron Mountain will remain in these
facilities under an initial ten-year lease term, with options to
renew up to an additional 20 years.
This transaction is part of Iron Mountain’s ongoing capital
recycling program, and Iron Mountain expects to utilize the
proceeds to reinvest in higher growth areas of its business.
“As we have highlighted previously, we view the market
conditions for industrial real estate assets as highly attractive.
This is a compelling opportunity for us to monetize a small portion
of our owned industrial assets, while still maintaining long-term
control of the facilities,” said Barry Hytinen, executive vice
president and CFO at Iron Mountain. “Combined with our balance
sheet strength and strong cash flow generation, this transaction
frees up approximately $260 million of investable capital on a
leverage-neutral basis, that we intend to redeploy into faster
growing areas, including our data center business.”
David Levine, Senior Managing Director in Blackstone Real
Estate, said, “The industrial sector continues to benefit from
strong demand driven by e-commerce tailwinds, and we believe these
well-located assets are a great addition to our portfolio, which is
heavily weighted toward faster-growing sectors like logistics. We
will continue to pursue compelling opportunities to acquire
high-quality income-generating assets on behalf of our BREIT
investors.”
About Iron Mountain Iron
Mountain Incorporated (NYSE: IRM), founded in 1951, is the global
leader for storage and information management services. Trusted by
more than 225,000 organizations around the world, and with a real
estate network of more than 90 million square feet across
approximately 1,450 facilities in approximately 50 countries, Iron
Mountain stores and protects billions of valued assets, including
critical business information, highly sensitive data, and cultural
and historical artifacts. Providing solutions that include secure
records storage, information management, digital transformation,
secure destruction, as well as data centers, cloud services and art
storage and logistics, Iron Mountain helps customers lower cost and
risk, comply with regulations, recover from disaster, and enable a
more digital way of working.
Visit www.ironmountain.com for more information.
About Blackstone Real Estate Income
Trust Blackstone Real Estate Income Trust, Inc. (BREIT)
is a perpetual-life, institutional quality real estate investment
platform that brings private real estate to income focused
investors. BREIT invests in stabilized, income-generating U.S.
commercial real estate across key property types and to a lesser
extent in real estate-related securities. BREIT is externally
managed by a subsidiary of Blackstone (NYSE: BX), a global leader
in real estate investing. Blackstone’s real estate business was
founded in 1991 and has approximately $174 billion in investor
capital under management. Further information is available at
www.breit.com.
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Media Contact Iron Mountain
Global Communications media@ironmountain.com Ilana Mouritzen
Ilana.Mouritzen@Blackstone.com +1 212-583-5776 Investor Relations Contacts Greer Aviv Senior
Vice President, Investor Relations Greer.Aviv@ironmountain.com
(617) 535-2887 Nathan McCurren Director, Investor Relations
Nathan.McCurren@ironmountain.com (617) 535-2997
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