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Singapore GIC leads investment in data centre platform in North America

Singapore GIC leads investment in data centre platform in North America

On
Feb 14, Singapore sovereign wealth fund GIC announced that
it has formed an investment vehicle called EdgeCore Internet Real Estate with
two other companies to build and operate data centres across North America.

According
to its website, EdgeCore is a
US-based provider of highly scalable, cloud-connected data centre solutions. It
is committed to enabling the growth and performance of its customers across its
highly scalable platform of state-of-the-art data centres.

EdgeCore
Internet Real Estate is formed to develop, acquire, and operate data centres
across North America. The investment vehicle is set up by Singapore sovereign
wealth fund GIC, Denver-based investment firm Mount Elbert Capital Partners
(Mount Elbert), and Canadian pension fund OPTrust.

In
this investment, GIC will be the lead anchor investor in EdgeCore Internet Real
Estate.

According
to Chief Investment Officer of GIC Real Estate Mr Lee Kok Sun, GIC is pleased
to partner with Mount Elbert and OPTrust in this venture.

“As
a long-term value investor, we believe the secular growth in data consumption
and public cloud usage will generate attractive returns in the data centre
sector,” Mr Lee said.

Initially,
EdgeCore will be capitalised with over US$800 million, equivalent to around S$1
billion, of equity targeted to support approximately US$2 billion in data
centre development and investment. EdgeCore Internet Real Estate’s initial roll
out of its North American data centre platform will include campus developments
across six markets.

EdgeCore
has acquired land in Mesa and Arizona. Prior to the end of this quarter, it
intends to acquire sites in Dallas in Texas, and Reno in Nevada. Construction
on each campus will commence immediately upon acquisition.

With
each campus designed to deliver between 100 MW and 200 MW of critical power to
customers, the Company plans to complete the first building in late 2018.

Moving
forward, EdgeCore intends to acquire more sites in the second quarter of this
year. This will be in three complementary Tier I markets, with a view toward
commencing construction on each campus within the year.

“We are pleased and honoured to join forces with
GIC and OPTrust, which we view as two of the world’s most capable and
sophisticated investors. We are excited to execute upon our shared vision of
creating a scalable North American data centre platform and we look forward to
expanding with GIC and OPTrust as we work to grow EdgeCore Internet Real Estate
beyond our initial roll out,” Chairman and CEO of EdgeCore Internet Real Estate
and Mount Elbert Mr Tom Ray said.

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