Equinix to Purchase Washington, D.C. Data Center Campus

Saturday, October 08, 2005

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Equinix has announced an agreement to acquire its flagship Washington, D.C. area data center campus in Ashburn, Virginia for $53.0 million. Equinix's Internet Business Exchange center in Ashburn is part of a 32.6 acre campus that totals 461,700 square feet located in the Dulles Corridor that is home to many of the region's technology companies. Equinix currently occupies three of the six buildings on the campus, including two fully built-out IBXs and a third available for expansion. The total campus is 95% leased. Equinix intends to sell those buildings that will not be used for expansion, and the company will evaluate opportunities to secure long-term financing on the retained buildings, either in the form of sale-leaseback or mortgage financing, by year-end.

Equinix also announced that it is ahead of schedule in the closing of the sale-leaseback of its Los Angeles area center in El Segundo. The company originally purchased the property for $34.5 million in September of this year and is currently in negotiations with multiple parties to sell the center for $36.0 - $40.0 million. They expect to close the transaction within 30 days.

"With the announced sale of the Ashburn campus, we saw an opportunity to secure our flagship IBX center as well as to acquire contiguous expansion space to position ourselves for further growth in one of our strongest markets," said Peter Van Camp, CEO of Equinix. "Given the tremendous interest we have received in the planned sale-leaseback of our recently acquired Los Angeles area center, we are confident there is a great opportunity to obtain attractive long-term financing for this strategic Washington, D.C. area property as well."