GI Partners doubles down, adding 22nd facility to data center portfolio
San Francisco-based private equity firm GI Partners is acquiring New Jersey-based data center facility 492 River Road for an undisclosed amount. The deal brings the firm’s data center portfolio to a totally of 22 properties amassing approximately 5.3 million square feet.
The Nutley, New Jersey-based facility was fully renovated in 2000 and updated again in 2009. The target spans approximately 130,000 square feet featuring “robust infrastructure, significant connectivity with access to 13 telecommunications providers in two meet-me-rooms, plus an expandable onsite substations.” BT Americas Inc. currently leases the entire property on a long-term basis where it provides a variety of services, including: disaster recovery, cloud and managed services.
GI Partners is a San Francisco-based PE firm with nearly 15 years of experience investing in data centers, carrier hotels and other tech-focused real estate. The PE firm acquired Komo Plaza, a 294,000 square foot data facility and office space, from real estate investment firm Hines Interests LP, for $276 million in January. In August, GI-Partners-backed Peak 10 purchased data center operator ViaWest from Shaw Communications Inc. (NYSE: SJR). The firm has raised more than $14 billion in capital through private equity and real estate strategies.
Acquisitions for data centers have become increasingly attractive for buyers of all kinds in the middle market. Recent deals include: Verizon Communications Inc. (NYSE: VZ) sold its data centers to Equinix Inc. (Nasdaq: EQIX) to focus on mobile video advertising; Equinix continuing its buying spree by adding Bit-isle Inc.; Fusion Telecommunications International Inc. (Nasdaq: FSNN) bought call center software company Technology for Business Corp.; and TierPoint LLC agreed to purchase Cosentry.