Sunday, October 22, 2017

Large Bahrain financial group invests $100m in US data centres

Increasing demand for data centres in the US led by growth in cloud services and data storage needs within Virginia drive investment.

GFH Capital, a subsidiary of Bahrain based GFH Financial Group, has announced its intention to invest $100m in US Virginia-based data centres.

The group will carry out the investment in partnership with Corporate Office Properties Trust (COPT), a data centre REIT operator valuated at $5bn and NYSE-listed.

COPT, in addition to managing the assets, have also made a 20% investment in the portfolio, which is expected to provide investors with semi-annual cash distributions at an annual rate averaging 9.5% over the investment period and an IRR of 12%.

The portfolio consists of two built-to-suit data centre facilities located in high technology business parks in the US state of Virginia.

GFH said the investment provides itself and its investors with exposure to the positive dynamics of the US real estate market and, in particular, increasing demand for data centres in the US led by growth in cloud services and data storage needs with Virginia serving as top data centre destination.

Mr. Luay Ahmadi, Senior Executive Officer of GFH Capital, said: “We are delighted to announce another key investment in the US Real Estate market building on our growing portfolio and track record of success in this market.

“We are particularly pleased to be undertaking this investment with a world-class partner, COPT, which will ensure we maximise both returns and exit on this investment.

“The data centre industry within the US real estate sector provides for further diversification and exposure for GFH and our investors and offers us the opportunity to leverage growth in this dynamic and fast growing technology driven segment.

“It is also an extension of our broader strategy to continue to acquire and bring to our investors unique and strong income yielding opportunities.”