Recycling Today archives

Iron Mountain sells five London facilities

The Boston-based secure destruction business will use proceeds from this sale to reinvest in other growth areas of its business.


Iron Mountain, a storage and information management services company based in Boston, has announced that it has sold a portfolio of five facilities to London-based Intermediate Capital Group (ICG), generating gross proceeds of about $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 12-year lease term, with options to renew up to an additional 20 years.

According to a news release from Iron Mountain, this transaction is part of the company’s ongoing capital recycling program. Iron Mountain says it expects to use the proceeds from this sale to reinvest in higher growth areas of its business.

“With our strong development pipeline together with highly attractive market valuations for industrial assets, we are pleased to continue our capital recycling program,” says Barry Hytinen, executive vice president and chief financial officer 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.”

Chris Brown, director at ICG, adds, “The Iron Mountain portfolio is a prime example of the mission critical real estate that ICG’s Sale and Leaseback fund is seeking to invest in. This represents the fund’s third transaction in 2021 and second transaction in the U.K., following the 2.94-million-square-foot forward funding of Jaguar Land Rovers’ new facility at Mercia Park earlier this year.”

ICG was advised by its asset management partner Marchmont Investment Management and CBRE, and Iron Mountain was advised by JLL.