Canadian construction firm Urbacon is said to be looking to secure new asset-backed financing, using one of its data centers in Ontario as collateral.

As reported by Bloomberg, Urbacon’s Data Centre Solutions unit is looking to secure approximately C$320 million ($233 million) in debt financing backed by a new data center in Toronto.

Citing people familiar with the matter, the facility is reportedly leased to an AAA-rated technology company on a long-term contract. Further details on the facility weren’t shared.

The deal, led by Toronto-Dominion Bank, could reportedly come to market as early as next week.

Representatives for TD Bank and Urbacon didn’t reply to the publication's requests for comment.

Update: Asset Securitization Report suggests the data center in question is located in Richmond Hill, near Toronto.

Purpose-built for the existing tenant, the first phase of the facility was handed over in March 2023 and the second in January 2024. The facility is said to be leased until the end of 2033 with two five-year extension options.

The tenant reportedly leases all of Urbacon's current data center portfolio.

Original story continues:

Urbacon is a Toronto, Ontario-based construction company that has successfully built facilities in Montreal, Toronto, and Richmond Hill, Ontario, through its Urbacon Data Centre Solutions unit. As well as building data centers, the company is a wholesale colocation provider.

On its website, the company says it has delivered more than 2 million sq ft (185,806 sqm) of data center space, has some 62MW of capacity in operation, and more than 150MW available for development.

All located within the Barker Business Park in York Region, Urbacon lists four Toronto facilities totaling 62MW as fully leased, with three more in the Canadian city being developed and available for lease.

The company has also delivered data centers for the likes of Telus, Rogers, and others.

Bloomberg also reports that Canadian data center operator eStruxture raised C$750 million (US$54.4m) in an asset-backed security deal led by Guggenheim Securities earlier this month.