Iron Mountain announced that it has sold a portfolio of 13 industrial facilities to Blackstone Real Estate Income Trust, Inc. (BREIT) for $358 million in a sale-leaseback transaction.
The industrial properties, totaling 2.1 million square feet, is located predominantly in California, northern New Jersey and the Lehigh Valley.
Iron Mountain, the global storage and information management services company, will remain in these industrial facilities under an initial ten-year lease term, with options to renew up to an additional 20 years.
“As we have highlighted previously, we view the market conditions for industrial real estate assets as highly attractive. This is a compelling opportunity for us to monetize a small portion of our owned industrial assets, while still maintaining long-term control of the facilities,” said Barry Hytinen, executive vice president and CFO at Iron Mountain. “Combined with our balance sheet strength and strong cash flow generation, this transaction frees up approximately $260 million of investable capital on a leverage-neutral basis, that we intend to redeploy into faster growing areas, including our data center business.”
David Levine, Senior Managing Director in Blackstone Real Estate, said, “The industrial sector continues to benefit from strong demand driven by e-commerce tailwinds, and we believe these well-located assets are a great addition to our portfolio, which is heavily weighted toward faster-growing sectors like logistics. We will continue to pursue compelling opportunities to acquire high-quality income-generating assets on behalf of our BREIT investors.”