These Dividend Stocks Are Joining Forces in a $7 Billion Deal to Capture a $1 Trillion Once-in-a-Generation Opportunity
Digital Realty (NYSE: DLR) and Blackstone (NYSE: BX) are joining forces to develop data centers. They expect to invest about $7 billion over the next several years to build four data center campuses across three metro areas. The deal will provide Digital Realty with funding to accelerate its development plans while enabling Blackstone to invest more investor capital in one of its highest conviction themes.
The investment should enable both companies to grow their income in the future, giving them more cash to support their higher-yielding dividends. Here's a look at what the deal means for investors.
Digital Realty is forming a joint venture (JV) with several funds managed by Blackstone. They will acquire an 80% interest in the data center development JV for an initial contribution of $700 million. The data center REIT will retain the other 20% interest and manage the JV. The partners will fund their proportional shares of the remaining development costs for four data center campuses in Frankfurt, Paris, and Northern Virginia.
Source Fool.com