COPT, Blackstone Real Estate Form Two Data Center Shell Joint Ventures

Office and data center REIT Corporate Office Properties Trust (COPT) has formed new data center joint ventures with entities affiliated with Blackstone Real Estate.

The Joint Ventures acquired a 90% interest in five single-tenant data center shell properties with about 1.1mn square feet valued at $278mn.

Details of which facilities were sold were not disclosed, with COPT saying the acquisition was executed through two separate transactions occurring in mid-December and early January.

COPT received approximately $250mn to use to fund the equity required for its development pipeline. COPT does not expect it will need to raise additional capital this year.

COPT and Blackstone are no strangers when it comes to an investment partnership. Over the past three years, including the latest venture, the two companies have jointly invested $690mn in data centers and properties.

Most of COPT’s portfolio is in locations that support the US government and its contractors, most of whom are engaged in national security, defense and IT.