Real estate investment trust (REIT) Corporate Office Properties Trust (COPT) (NYSE: OFC) and Blackstone Real Estate (NYSE: BX), who in November 2020 formed a joint venture to invest in data centres, have acquired two new properties at a cost of US$119 million.

The two single-tenant shell properties amount to a combined total of 432,000 sqf. The investment represents a 90% stake on the properties, with COPT’s equity share valued at approximately $107 million with the remainder belonging to Blackstone.

Last year, the two funds formed a JV, investing in the data centre shell market with properties at hand amounting to 1.3 million square feet.

The two acquired interests in eight single-tenant, data centre shell properties.

Prior to that, Blackstone Real Estate acquired a 90% interest in two of COPT’s wholly owned data centre shell properties valued at $90 million.

Blackstone Real Estate had also signed an agreement to acquire a 90% interest in six other data centre shell properties partially owned by COPT.

Stephen E. Budorick, COPT’s president and chief executive officer, said at the time: “We are very pleased to expand our relationship with Blackstone. These transactions further confirm the value of our portfolio of strategically located data centre shell properties and the value our development platform adds for shareholders.”

Tyler Henritze, head of acquisitions Americas for Blackstone Real Estate, added: “We believe data centres will continue to benefit from strong secular tailwinds, including immense demand growth as internet traffic and the use of cloud services continue to rise.

“These transactions are attractive opportunities to invest in high-quality powered shell warehouses in the premier market globally. We have an excellent partner in COPT and look forward to continuing to build our relationship over the long-term.”