Australian pension fund to invest $1.6 bln in data centre firm
Australian pension fund to invest $1.6 bln in data centre firm: The biggest pension fund in Australia, AustralianSuper, said on Tuesday that it will make its first sizable investment in data center platforms by purchasing a minority position in a major European data center company for A$2.5 billion ($1.6 billion).
According to a release, AustralianSuper, which has a market value of A$300 billion, will become a significant stakeholder in Vantage Data’s Europe, Middle East, and Africa (EMEA) division with American investment firm DigitalBridge (DBRG.N).
Data centers are a magnet for institutional investors due to their storage of servers and hardware. In recent years, the industry has seen a surge in dealmaking due to the growing demands on large technology businesses for data management and storage.
The investment, according to Australian Super Head of Infrastructure Nik Kemp, “would provide access to an attractive market that had delivered strong growth and returns in recent years.” Kemp said it was the fund’s biggest infrastructure transaction in Europe.
Vantage EMEA would continue to be mostly owned by DigitalBridge Group. Additional financial information, such as the value, was not disclosed by AustralianSuper.
Within five years, AustralianSuper hopes to increase member assets to A$500 billion, with 70% of inflows going toward international markets. Just over ten percent of the fund’s assets are held outside of Australia.
August saw the fund recruit top executives to its London office as part of its international expansion strategy.
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