Acquisitions and Sales

12 Months Ended

Dec. 31, 2019

Acquisitions and Sales [Abstract]

Acquisitions and Sales

3. Acquisitions and Sales

(All references to square footage, acres and megawatts are unaudited)

Netherlands Acquisition

On April 23, 2019, we completed the acquisition of two data centers in the Netherlands (the “Netherlands facilities”) for approximately $44.5 million in cash consideration, including closing costs. The two facilities, in Groningen and Eemshaven, have approximately 160,000 square feet of raised floor capacity and 30 megawatts of combined gross power available. This acquisition was funded with a draw on our unsecured revolving credit facility.

The acquisition was accounted for as an asset acquisition. The purchase price allocation of the Netherlands facilities is a fair value estimate that utilized Level 2 and Level 3 inputs, including discounted future cash flows and observable market data on replacement costs, leasing rates, and discount rates that were used to measure the acquired assets and liabilities on a non-recurring basis.

The following table summarizes the consideration for the Netherlands facilities and the allocation of the fair value of assets acquired and liabilities assumed at the acquisition date (in thousands):

	Purchase Price Allocation		Weighted Avg Remaining Useful Life (in years)
Land	$	1,743	N/A
Buildings and improvements		8,640	24
Construction in progress		29,902	N/A
Acquired intangibles (In-place lease & above market lease)		2,911	3
Deferred costs		906	3
Other assets		128	3
Net Working Capital		554	N/A
Total identifiable assets acquired		44,784
Acquired below market lease		284	3
Total liabilities assumed		284
Net identifiable assets acquired	$	44,500

Land Acquisitions

In April 2019, we completed the acquisition of approximately 4 acres of land for our Atlanta (DC-2) facility for approximately $2.2 million. In July 2019, we completed the acquisition of approximately 28 acres of land in Ashburn, Virginia for approximately $22.4 million. In November 2019, we completed the acquisition of approximately 75 acres of land in Richmond, Virginia for approximately $7.0 million. These acquisitions were accounted for as asset acquisitions and are included within the “Construction in Progress” line item of the consolidated balance sheets.

During 2018, we completed multiple acquisitions of land in Manassas, Virginia totaling 118 acres for approximately $37.0 million. A portion of the land was used to support the construction of the Manassas data center that we contributed to an unconsolidated entity subsequent to December 31, 2018. These acquisitions were accounted for as asset acquisitions. The land acquired in the Manassas purchases, as well as subsequent costs for construction in progress, were included within the “Construction in Progress” line item of the consolidated balance sheets.

In October 2018, we completed the acquisition of approximately 55 acres of land in Atlanta, Georgia adjacent to our existing Atlanta (DC-1) (formerly known as Atlanta-Metro) mega data center for approximately $80.1 million. The acquisition was accounted for as an asset acquisition, with the majority of the purchase price included within the “Construction in Progress” line item of the consolidated balance sheets at the time of acquisition.

Atlanta Land Improvement Sale

In November 2019, we sold to a third party certain land improvements which we had previously acquired as part of a larger acquisition of land to expand our Atlanta, Georgia campus. This sale of incidental real estate resulted in a gain of $1.4 million. Additionally, we entered into a ground lease with the Company as lessor and the acquirer of the building as lessee which has an initial term of 20 years.