ICG Real Estate, the real estate division of ICG, has bought a portfolio of digital infrastructure assets in central London for £125 mln (€143 mln).
The portfolio consists of five data exchanges, predominantly located within Zone 1, and is let to Vodafone UK. The exchanges provide connectivity for Vodafone’s customers.
ICG Real Estate and Vodafone have renegotiated the existing leases, extending them to 2048 and including RPI-linked increases, which has enhanced the portfolio's value.
Chris Nichols, head of strategic real estate at ICG Real Estate, commented: ‘Working in partnership with Vodafone, we engineered a solution which secured its long-term infrastructure, whilst generating an immediate value uplift for our investors. This is a clear demonstration of our ability to provide both certainty of execution and a solution for corporate occupiers. We look forward to working with Vodafone to asset manage and enhance the existing portfolio, whilst seeking to unlock additional mutually beneficial opportunities.’
ICG Real Estate is focused on investing in digital infrastructure, which it sees as a key growth area due to the increasing demand for data and the broader digitalization trend.
The company typically acquires assets through long-term, index-linked sale and leaseback transactions in partnership with corporates.
Colliers advised both ICG Real Estate and Vodafone on the transaction.
