Land grab?

September 11, 2006

rockiesjpeg.jpegVarious online profiles, including this one on Yahoo Finance describe Sun Microsystems (SUNW) as being in the network computing business. But an item buried in the 10-K that Sun filed late Friday shows that the company has been on a bit of a buying spree over the past year when it comes to commercial real estate.

In the recently filed K, Sun disclosed that it owns 352 acres of undeveloped land in Colorado and Texas. That’s a significant increase from the 38 undeveloped acres in Austin, Tx. that the company reported in the K it filed a year earlier. Though the current K doesn’t mention a few key details, like where the bulk of that land is located, Sun already operates large facilities in Colorado between Denver and Boulder — 1.6 million square feet in Louisville and another 916,000 square-feet in Broomfield. And this page on Sun’s site talks about the niceties of living and working in Colorado. Then again, the K notes that Sun already has 1.2 million square feet of property available for future build-out and another 2 million square feet of space that is vacant, only 100,000 square-feet than last year.

Sun has been pretty active in real estate lately. Earlier this year, the company sold its Newark campus to BioMed Realty Trust (BMR) for $214 million under a sale-leaseback deal that allows Sun to cancel the leases on only 90 days notice.

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