Vancouver-based QuadReal Property Group and US wholesale facility provider T5 Data Centers have joined forces to invest over $2.5 billion in data centers.
The platform will continue to be called T5 Data Centers, and will be used to develop and acquire enterprise and hyperscale data centers.
Stacks of cash
Last month we wrote that QuadReal are considering investing $1 billion in T5, and it is unclear if this platform is a joint venture between the two companies or a de-facto investment in the company.
We also previously reported that Australian financial services provider Macquarie Group could take a majority stake in T5 data centers, as previous investors Iron Point Partners considered a sale of their shares.
The company’s value is believed to have been set at approximately $800 million in the negotiations
QuadReal is the real estate investment division of British Columbia Investment Management Corp. The real estate arm manages around $20.6bn (C$27.4bn)of the company’s $145.6bn (C$109.3bn).
T5 Data Centers has grown both organically and through acquisitions since it was founded in 2007. Most of T5's data centers are in Tier 1 US markets - including Los Angeles, Dallas, New York, Charlotte and Colorado Springs. The company also announced that it would be entering the European market with a data center in Cork, Ireland.
Jameson Weber, head of special situations for QuadReal said: “This strategic investment puts us in a very unique position to participate in this growing market alongside a trusted company with a proven track record in data center development, construction, and management. T5 Data Centers is the logical partner to help us build a long-term business in tech-related real estate.”