• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Digital Realty Trust storms into Africa with a majority stake in Teraco

A. William Stein (Bill), chief executive officer, Digital Realty (iStock, Digital Realty)

Digital Realty Trust is making a big bet on Africa.

The Austin, Texas-based real estate investment trust, aiming to cash in on pandemic-era demand for data centers, bought 55 percent of Johannesburg’s Teraco from investors that include Berkshire Partners and Permira, Reuters reported. The deal values Teraco at about $3.5 billion.

Digital Realty, which has 280 data centers across the world, is making the purchase as
infrastructure and real estate funds snap up multi-billion-dollar deals for warehouses filled with computing and data storage systems.

Africa’s data center market is expanding as companies turn to local cloud storage to cut costs by renting storage rather than relying on other nations or building their own servers. At the same time, data consumption on the continent is rising as tech companies and carriers roll out fiber optic cables to provide faster and more stable internet connections that need secure local data hosting.

Teraco operates seven data centers in Johannesburg, Cape Town and Durban, serving more than 600 clients that include global internet companies.

The Teraco deal would add regional scale with a “network-dense portfolio in South Africa’s most strategically important metros,” said Digital Realty CEO William Stein.

As the pandemic unfolded in 2020, economic volatility prompted companies to freeze information technology budgets, sending demand for data centers down 11 percent. Even so, 2020 was still the second-best year on record for leasing, according to CBRE.

Data center real estate investment trusts were also the best performing REIT sector. While the real estate investment trust market declined 12 percent, data center real estate investment trusts rose on average 25 percent.

Digital Realty Trust, a $41 billion real estate company and one the nation’s largest data-center developers, began development of a 600,000-square-foot compound in 2020.

[Reuters] – Dana Bartholomew

[contact-form-7 404 "Not Found"]

The post Digital Realty Trust storms into Africa with a majority stake in Teraco appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 09 January 2022
  • The Real Deal
  • Uncategorized
  •  Like
A 150-acre estate in Indiana lists for $14 million, a state record →← Mandarin Oriental NY majority stake sells for $98M
  • Recent Posts

    • Feds to sell landmark Spring Street Courthouse in DTLA May 14, 2025
    • Rams owner Stan Kroenke eyes Olympics broadcast center, film studio in Inglewood May 14, 2025
    • Eaton fire victims, others claim insurance adjuster stole repair money  May 14, 2025
    • State Farm approved for 17% rate hike amid California “insurance crisis” May 13, 2025
    • Optimus scores $22M refinancing for South LA shopping center May 13, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM