Benzinga | Jan 25, 2022 04:22PM EST

COPT Sells DC-6 For $222.5M

Corporate Office Properties Trust ("COPT" or the "Company") (NYSE:OFC) has sold 100% of COPT DC-6 ("DC-6"), the only asset in the Company's Wholesale Data Center reporting segment, to an investment vehicle managed by Cloud Capital, an affiliate company of CloudHQ, for $222.5 million. There was no debt on the asset and the Company will recycle the proceeds into funding its 1.8 million square feet of development projects that, on September 30, 2021, were 94% leased.

Stephen E. Budorick, COPT's President & Chief Executive Officer, commented, "We are pleased to transfer DC-6 to the Cloud Capital team, whose extreme professionalism supported a smooth underwriting process and imbues us with confidence that our tenants will be well-served." He continued, "Furthermore, this sale provides our Company with cost-effective equity capital to fund our highly successful and value accretive development pipeline, simplifies our corporate profile by removing the only multi-tenant data center from our portfolio, and further concentrates our capital allocation to Defense/IT Locations."

Hossein Fateh, CEO and Founder of Cloud Capital, commented, "We are pleased to have worked with the COPT team on this transaction and are excited to add the DC-6 facility to the Cloud Capital portfolio. Northern Virginia is the largest data center market in the world and continues to see high levels of tenant demand. Our highly skilled team, with a proven track record of successfully managing data center investments, will be looking to add value through various asset management initiatives in the short and medium term. In addition, we are actively looking at several interesting acquisition opportunities in the U.S. and internationally which we are excited about."