Storage and information management services provider, Iron Mountain announced that the company has sold a portfolio of five facilities to Intermediate Capital Group (ICG) generating gross proceeds of approximately $178 million.
550,000 square feet, $178 million
The transaction, a total of 550,000 square feet, is a sale-leaseback transaction with the facilities located in greater London. The company will remain in these facilities under an initial twelve-year lease term, with the option of an additional 20 years.
The company stated that the transaction is a part of the company’s ongoing capital recycling program. The company also expects to utilize the proceeds to reinvest in higher growth areas of its business. Barry Hytinen, executive vice president and CFO of Iron Mountain said,
“With our strong development pipeline together with highly attractive market valuations for industrial assets, we are pleased to continue our capital recycling program. The sale-leaseback of these assets allows us to generate significant investable proceeds while essentially maintaining long-term control of the facilities. On a leverage neutral basis, we estimate this transaction will generate nearly $140 million of capital, which we intend to invest in higher growth areas, including our data center business.”