Investments in Real Estate

We acquired the following real estate properties during the nine months ended September 30, 2016:



Location	Market	Date Acquired	Amount (in millions)
Sovereign House	London	July 5, 2016	(1)
West Drayton	London	July 5, 2016	(1)
Olivers Yard	London	July 5, 2016	(1)
Bonnington House	London	July 5, 2016	(1)
Meridian Gate	London	July 5, 2016	(1)
Amsterdam Business Park	Amsterdam	July 5, 2016	(1)
Amsterdam Science Park	Amsterdam	July 5, 2016	(1)
Lyonerstrasse	Frankfurt	July 5, 2016	(1)
Land parcels ⁽²⁾	Various	Various	$	47.6
Total			$	866.5


(1)	On July 5, 2016, the company completed the acquisition of a portfolio of eight high-quality, carrier-neutral data centers in Europe from Equinix, which we refer to as the Europe Portfolio Acquisition. The purchase price was $818.9 million in the aggregate (based on the exchange rate at the date of acquisition).


(2)	Represents currently vacant land which is not included in our operating property count. We completed four acquisitions of land parcels in the three months ended September 30, 2016 in Northern Virginia, Dallas and Chicago. Purchase price in U.S. dollars and excludes capitalized closing costs on land acquisitions.

The table below summarizes the preliminary purchase price allocation for the properties acquired during the nine months ended September 30, 2016 (in thousands):



Location	Investments in Real Estate		Intangibles		Above / Below-Market Lease (Lessee)		Goodwill		Accounts Payable and Accrued Expenses			Deferred Taxes
Europe Portfolio	$	308,692	$	226,077	$	8,089	$	448,123	$	(118,647	)	$	(53,449	)

Due to the timing of the closing of the acquisition of the Europe Portfolio, the final purchase price allocation is expected to be completed in late 2016. As such, the estimates used as of September 30, 2016 are subject to change, including the amounts allocated to the acquired intangible assets, including goodwill, and deferred taxes.

Dispositions

We sold the following real estate property during the nine months ended September 30, 2016:



Location	Market	Date Sold	Gross Proceeds (in millions)		Gain on Sale (in millions)
47700 Kato Road and 1055 Page Avenue	Silicon Valley	January 21, 2016	$	37.5	$	1.0
Data center portfolio ⁽¹⁾	Various	July 11, 2016	114.5		24.5
114 Rue Ambroise Croizat ⁽²⁾	Paris	August 1, 2016	212.0		144.3
			$	364.0	$	169.8


(1)	On July 11, 2016, the Company closed on the sale of a four-property data center portfolio, including two in St. Louis and two in Northern Virginia totaling over 454,000 square feet for approximately $114.5 million. The Company recognized a gain on the sale of approximately $24.5 million in the third quarter of 2016. The four properties were classified as held for sale as of June 30, 2016.

(2)

The Company granted Equinix an option to acquire the Company's facility in 114 rue Ambroise Croizat in Paris. Equinix elected to exercise its option to acquire the Paris property, and on July 2, 2016, the Company entered into an agreement to sell the property to Equinix for approximately €190 million (or approximately $212 million based on the exchange rate as of August 1, 2016). The Paris property sale closed on August 1, 2016. The Company recognized a gain on the sale of approximately $144.3 million in the third quarter of 2016. This property was classified as held for sale as of June 30, 2016.

We have identified certain non-core investment properties we intend to sell as part of our capital recycling strategy. Our capital recycling program is designed to identify non-strategic and underperforming assets that can be sold to generate proceeds that will support the funding of our core investment activity. We expect our capital recycling initiative will likewise have a meaningfully positive impact on overall return on invested capital. In addition, our capital recycling program does not represent a strategic shift, as we are not entirely exiting regions or property types. During this process, we are evaluating the carrying value of certain investment properties identified for potential sale to ensure the carrying value is recoverable in light of a potentially shorter holding period. As a result of our evaluation, during the year ended December 31, 2014, we recognized approximately $126.5 million of impairment losses on five properties located in the Central, East and West regions. The fair values of the five properties were primarily based on discounted cash flow analyses, and in certain cases, we supplemented the analyses by obtaining broker opinions of value. As of September 30, 2016, two of these five properties met the criteria to be classified as held for sale and the other three have since been sold.

As of September 30, 2016, the Company has taken the necessary actions to conclude that an additional property (in addition to the two properties referenced above) to be disposed of as part of our capital recycling strategy met the criteria to be classified as held for sale. As of September 30, 2016, these three properties had an aggregate carrying value of $55.9 million within total assets and $2.8 million within total liabilities and are shown as assets held for sale and obligations associated with assets held for sale on the condensed consolidated balance sheet. The three properties are not representative of a significant component of our portfolio, nor do the potential sales represent a significant shift in our strategy.