CentralColo buys Virginia data centre in $96m JV

By:
James Pearce
Published on:

Californian data centre provider has bought 280,000 square foot campus from Meridian Group

Data centre provider CentralColo has bought a large data centre in north Virginia as part of a joint-venture with real estate firm Legacy Investing.

The deal, which was first announced last month, will see CentralColo buy the site from real estate investor The Meridian Group, according to Virginia Business.

The Tysons Technology Center is located on a 280,000-square foot campus in Vienna, Virginia, and already houses tenants including defence technology company Leidos and the General Services Administration. It includes a 200,000 square foot office and data centre building, plus a separate 80,000 square foot office.

The acquisition is part of Californian firm CentralColo’s partnership with Legacy Investing, and has cost around $96 million, according to reports.

“This transaction fit our investment strategy of acquiring underperforming assets and unlocking additional value,” Dave Gelfond, Meridian’s senior vice president said. “It was a repositioning opportunity where we converted substandard office space to data space and increased leasing from 63 percent at acquisition to 91 percent at sale.”

It comes just months after the Silicon Valley firm appointed Ken Parent as CEO, after securing a “significant investment” from Safanad that it said would fun expansion plans.

CentralColo was founded by internet and infrastructure entrepreneur Arman Khalili in 2015.