Iron Mountain sells 13 industrial facilities

Iron Mountain, a storage and information management services company based in Boston, has announced that it has sold a portfolio of 13 industrial facilities to Blackstone Real Estate Income Trust Inc., generating gross proceeds of $358 million. The transaction, totaling 2.1 million square feet, is a sale-leaseback, of properties predominantly in California, northern New Jersey and the Lehigh Valley region in eastern Pennsylvania.

According to a news release from Iron Mountain on the transaction, the company says it plans to remain in these facilities under an initial 10-year lease term, with options to renew up to an additional 20 years. The company says this transaction is part of its capital recycling program, and Iron Mountain expects to use proceeds to reinvest in higher growth areas of its business.

“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,” says Barry Hytinen, executive vice president and chief financial officer 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.”