A data center sale-leaseback is when the owner and end-user of a data center simultaneously sells its facility to another entity and leases back the requisite amount of data center space from the new owner. A data center sale-leaseback transaction can result in a lease for 10, 20, 50 or even 100% of the facility.
The result of a well-executed data center sale-leaseback is a tenant with a cash infusion who leases exactly what they need and on terms upon which they are comfortable. Tenants are then removed from real estate ownership responsibilities and relinquish space that was either not used or severely underutilized. A new owner then comes in with a fresh perspective on the valuation or direction of the site.
H5 data centers is a provider of wholesale data center services to international carriers, colocation and cloud service providers, and large enterprise customers. We have the access to capital, expertise and focus to successfully negotiate a "win-win" data center sale-leaseback with future customers.
If you have a data center asset that you may consider for a sale-leaseback, please contact an H5 data center expert as soon as possible. We are on the lookout for ways to expand our portfolio into new US markets and beyond.
A data center sale-leaseback is an excellent way for companies with strong data center assets to reallocate capital from real estate assets to core business operations or to investors. In most cases, the long-term leases executed between H5 and the customer can be customized in a way that reduces any risks associated with not owning or controlling the real estate. This enables a real win-win scenario: a desirable data center asset to H5, significant capital to the future customer without negatively affecting their data center operations. Even better if the future customer's assets are being underutilized.
H5's team of experienced data center sale-leaseback experts can help ensure that the transaction is executed in a timely, discreet and professional manner. At H5, we aim to be fair, transparent and equitable to support a lasting mission-critical relationship.