Real estate investor Castleforge has teamed up with data centre operator Galaxy Data Centers for its sector debut.
The pair have bought the Redhill Data Centre Campus in the Foxboro Business Park in Surrey. The 127,000 sq ft, three-building asset has a development value of more than £100m, with 26 tenants.
ICG Real Estate provided acquisition finance for the deal, with CBRE brokering the transaction.
Castleforge partner Adam MacLeod said: “Data centres have been an attractive prospect that we have been monitoring for some time, but with advancements in AI and cloud computing accelerating demand, we have been eager to find the right opportunity in which to invest. The sector also fits within our speciality of operational real estate investment, and we see this as a logical extension to our existing capabilities.”
Paul Leong, chief financial officer at Galaxy Data Centers, added: “Redhill presents a rare opportunity to acquire a high-performing data centre in the prime London market, with strategic potential for expansion in both power and scale.
“We see tremendous growth potential to expand the facility’s power capacity and grow Redhill’s customer relationships. We are dedicated to enhancing the service and experience for all of Redhill’s customers throughout this transition and beyond.”
Photo © Manuel Geissinger/Pexels
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