British Land is in negotiations to sell a number of Vodafone-occupied data centers in London to US real estate firm Realty Income.
In July reports surfaced that Savills was seeking buyers for the Network Portfolio, six facilities spanning a total of 260,000 sq ft (24,155 sqm).
This week the Sunday Times reported the portfolio’s owner, UK real estate firm British Land, was in negotiations with US real estate group Realty Income.
A deal, which would also include three shopping centers, could be valued at £300 million ($380m). Previous reports suggest the Vodafone-occupied facilities alone were valued at around £100 million ($126m).
The Network properties are let to Vodafone Enterprise UK on leases expiring in April 2032. They generate total passing rent of £6.1 million ($7.7m) per annum. The properties include several data centers across London, many at sites previously occupied by Cable & Wireless, as well as the recently-renovated Smale House office building.
EGI previously said the sites are being marketed with scope for medium to long-term redevelopment potential for uses including student and residential, as well as more offices and data centers.
Realty Income has previously mainly focused on investing in grocery stores, convenience stores, dollar stores, home improvement, and quick-service restaurants.
The retail parks reportedly also part of discussions are located in Milton Keynes, Inverness, and Peterborough. In 2019 British Land and Realty entered a joint venture for a dozen British Land-owned Sainsbury's stores in a £400 million+ deal.
Last year Keppel DC REIT acquired a Vodafone data center in the Bracknell area of London in a sale-leaseback deal for $57 million ($76.9m). 2022 also saw Vodafone announce it was looking for “sale-and-leaseback and repositioning opportunities” for its Newbury headquarters campus. The campus consists of 486,270 sq ft of office space across seven self-contained buildings.