The real estate secondaries arm of Ares Management has taken a minority stake in National Real Estate Advisors and Sabey Corporation’s US data centre venture.
Ares has made the undisclosed minority equity investment in Sabey Data Center Properties (SDCP), whose assets include six campuses totalling approximately 251MW of operating capacity, with an opportunity to triple that output by 2036 on existing land holdings.
Jamie Sunday, co-head of real estate secondaries at Ares, said: “We are very pleased to partner with Sabey and National to support the next phase of SDCP’s growth. This investment reflects our conviction in the sector and the strength of our secondaries platform in providing flexible capital solutions to leading real estate fund managers and operators.
“Through this investment we gain access to a quality existing operating portfolio leased to a broad set of predominantly investment-grade tenants, including a mix of large enterprises and hyperscalers, and a sizeable land bank to support continued growth.”
Tim Mirick, president of SDCP, said: “Welcoming Ares as an investor is a strong endorsement of SDCP’s platform, our team and the long-term demand we’re seeing for scaled data centre infrastructure.
“With Sabey, National and now Ares aligned behind the business, we are well positioned to execute our disciplined growth plan and deliver the mission-critical capacity our customers need.”
Jeffrey Kanne, president and CEO of National Real Estate Advisors, said: “Sabey and National have built a longstanding partnership around this platform, and we’re pleased to welcome Ares as part of that continued relationship.
“This investment adds an additional institutional partner that aligns with and supports our disciplined approach to growing our data center portfolio.”
To read the latest IPE Real Assets magazine click here.
