Iron Mountain has sold a portfolio of five storage centers in the UK to Intermediate Capital Group (ICG), generating gross proceeds of approximately $178 million, based on current exchange rates. The transaction, totaling 550,000 square feet, is a sale-leaseback transaction with the properties located in the greater London area. Iron Mountain will remain in these facilities under an initial twelve-year lease term, with options to renew up to an additional 20 years.
“With our strong development pipeline together with highly attractive market valuations for industrial assets, we are pleased to continue our capital recycling program,” said Barry Hytinen, executive vice president and CFO at Iron Mountain. “The sale-leaseback of these assets allows us to generate significant investable proceeds while essentially maintaining long-term control of the facilities. On a leverage neutral basis, we estimate this transaction will generate nearly $140 million of capital, which we intend to invest in higher growth areas, including our data center business.”
