Vantage DC, Colony Capital form $3.5bn partnership
This week, and Los Angeles-based investment group just announced a new strategic partnership with the potential to dramatically accelerate Vantage’s data centre network throughout Europe and the US. This new strategic partnership has been valued at $3.5bn.
Vantage Data Centres, an industry leading provider of hyperscale data centre campuses, will accept a direct investment of $1.2bn from Colony Capital - under the advisement of Citibank.
Colony Capital is a leading global investment firm with a focus on real estate and property. The company manages a $50bn portfolio of real assets on behalf of its shareholders and limited partners, including over $20bn in digital real estate investments through Digital Colony, its digital infrastructure platform.
The funds will be used to support the growth of Vantage Data Centres' diverse portfolio across the US and European markets, which already contains 12 stabilised North American data centres, which span more than 1.4mn square feet and provide 150MW of IT capacity across key strategic markets in Santa Clara, California; Quincy, Washington; Montreal and Quebec City, Canada.
“This strategic partnership with the Colony Capital-led investor group provides Vantage with a partner that deeply understands digital infrastructure,” said . “Vantage and its investor group are now even more well positioned to capitalise on a number of attractive market opportunities and deploy the necessary capital to drive innovation, deliver state-of-the-art facilities for our customers, and accelerate our expansion plans in existing and new markets globally.”
The partnership represents a significant leap forward for Colony Capital’s own digital transformation, with $200mn of the investment reportedly coming from Colony’s own balance sheet. In a press release, the company stated that this act served to underscore its commitment to investing in and acquiring world-class, stabilised digital infrastructure assets that deliver consistent returns for Colony shareholders.
“This innovative transaction establishes the most valuable portfolio of hyperscale data center assets in North America, backed and managed by the best-in-class management team at Vantage,” said l. “As Colony continues to build momentum around our strategic transformation to digital infrastructure, this investment demonstrates our commitment to acquire high-quality digital assets on our balance sheet. We expect this will benefit our shareholders by providing consistent, predictable earnings from long-term leases with the highest-caliber, investment-grade customers.”
GTR and SEGRO agree first UK data centre facility
SEGRO, a property investment and development company, has announced it has come to an agreement with the European data centre platform, Global Technical Realty (GTR) to construct its first UK-based data centre. SEGRO claims that the facility, which will span a total area of 400,711 sq ft, will be located in Slough and is to become “the largest data centre campus in the UK’s premier data centre and communications hub”.
What will SEGRO’s data centre facility be used for?
Supported by the global investment firm KKR, Global Technical Realty says it will be using the facility’s space on a 25-year term to operate bespoke data centres for high-growth global technology companies. The new facility aims to support the growing demand for third-party data centre provision amid ever-increasing growth in data usage and cloud services adoption.
Franek Sodzawiczny, CEO & Founder of GTR, said: “We are excited to be back in the UK alongside our partner KKR and look forward to working closely with SEGRO to deliver this state-of-the-art data centre campus. The data centre space is a fast-moving one. GTR was established to support its customers in providing a data centre solution wherever in the world there is a demand for it. We are delighted that the UK will become home to our flagship concept”.
James Craddock, Managing Director, Thames Valley at SEGRO, said: “We’re pleased to welcome GTR as the latest data centre operator to our thriving estate and our team of experts look forward to developing a stunning new facility for them and their customers. “Homeworking, data streaming, e-commerce and businesses’ reliance on cloud services have all grown during the pandemic, meaning demand for data centres is unabated.
“Slough Trading Estate is home to Europe’s largest data centre cluster and data centres are increasingly regarded as part of our key national infrastructure given the critical role they play in our daily lives”, he added.
The facility is expected to be delivered in two phases with operations beginning by Q4 of next year. The first phase plans to provide 132,575 sq ft of space phase two will create 268,136 sq ft of space. “Vacant possession of the site delivered to the customer by early 2022”, SEGRO said.
The project is also expected to create around 200 jobs during its construction, and a further 80 permanent roles once completed.