Australian data center firm CDC is reportedly looking to sell a stake in the company.
The Australian and Australian Financial Review report the Infratil-backed operator is looking to sell a 12.5 percent stake at an AU$16 billion (US$10.3bn) valuation.
The first bids for a stake in CDC are reportedly due before Christmas, with the process to continue into the new year.
Australian superannuation fund the Australian Retirement Trust is reportedly one of the interested bidders, according to the AFR.
Founded in 2007, Canberra Data Centres (CDC) has 14 Australian sites in operation and seven in development across Sydney, Canberra, Melbourne, and Auckland, New Zealand. Infratil first invested in CDC in 2016 alongside the Commonwealth Superannuation Corporation.
Commonwealth Super previously sold half of its 48.2 percent interest in CDC to the Australian sovereign wealth Future Fund in December 2019 for an undisclosed sum. It is part of Commonwealth Super’s stake which is reportedly up for grabs.
According to Infratil’s most recent results, CDC has 302MW of data center capacity in operation, with 388MW in development across Melbourne (121MW), Sydney (158MW), Canberra (39MW), and New Zealand (70MW) set to go within 18 months. The company’s future development pipeline now totals a further 1.6GW out till 2034.
The investment firm noted that CDC “will require further investment over the next 18 months to fund its accelerated growth.”
Earlier this year CDC closed an NZ$1.150 billion ($702.8m) equity raise to fund its expanding development pipeline.
Infratil is also an investor in UK operator Kao Data, New Zealand tower firm Fortysouth, and Kiwi telco One.NZ, and was set to buy ConsoleConnect until the deal fell through.
Investor interest in Australia’s data center market has been strong this year. AirTrunk was acquired by Blackstone and CPP for a record $16.1 billion this year, while HMC Capital acquired both local operator iseek and the Australian operations of Global Switch.
