QTS Realty Trust, a provider of software-defined and mega-scale data center solutions, has formed a joint venture with Alinda Capital Partners, an infrastructure investment firm. QTS contributed a 118,000-square-foot hyperscale data center under development in Manassas, Va., to the venture.
The facility was contributed at a stabilized value of approximately $240 million, excluding associated closing costs, representing a 6.75 percent cap rate. QTS and Alinda will each take a 50 percent interest in the venture, which will be reflected as an unconsolidated joint venture on QTS' reported financial statements beginning in the first quarter 2019.
Through this expected initial joint venture, QTS is able to:
Raise upfront net capital proceeds of approximately $53 million at closing, which will grow to approximately $87 million as the asset stabilizes, including QTS' share of joint venture debt.
Reduce its capital funding requirement by an aggregate of ap
