DPW Holdings Press Release 12-21-2020
DPW Holdings’ Subsidiary Enters into an Agreement to Acquire a 617,000 Square Foot Michigan Mixed-Use Facility with Maximum Power Capacity of 300MW which Is Being Converted to a Cloud Data Center Offering Multi-Megawatt Hyperscale Requirements
Renovations to Become a Cloud Data Center Are Expected to Be Completed Within Three Months
Company Anticipates the 34.5 Acre Property Will Provide Up to $54M in Gross Revenue and $17M-$22M in Net Operating Income from Enterprise Cloud Data Center and Commercial Real Estate Operations
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Dec. 21, 2020-- DPW Holdings, Inc. (NYSE American: DPW) a diversified holding company (“DPW,” or the “Company”) announced today that Alliance Cloud Services, LLC (“ACS”), a newly formed majority-owned subsidiary of its wholly-owned subsidiary, Ault Alliance, Inc. (“AAI”), has signed a purchase agreement to acquire a 617,000 square foot mixed-use commercial facility located on a 34.5 acre site in southern Michigan (the “Facility”) for $3.9 million in cash. The Company believes the purchase price of the Facility represents significant value given that the estimated replacement cost of the building, property and the extensive integrated infrastructure, which includes power, gas and rail services on or immediately accessible to the property, would be approximately $95 million. The transaction is expected to close on or about January 29, 2021. Revenue from the existing commercial real estate operations will be recognized during the quarter ending March 31, 2021 and, upon completion of the initial buildout of 30,000 square feet, or the equivalent of 1,000 cabinets capable of housing over 40,000 servers, recognition of revenue from the Enterprise Cloud Data Center is expected to begin during the quarter ending June 30, 2021. While the Company believes the Facility and its anticipated future operations will be successful, the Company cannot assure you that its expectations will materialize in a timely manner, if at all.
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