A fund managed by Intermediate Capital Group’s real estate asset management division has backed Proximity Data Centres with £25m (€28.2m) funding.
ICG-Longbow, through its ICG-Longbow UK Real Estate Debt Investments V fund has provided the capital to the UK regional edge colocation provider to help its strategic £80m rollout of 18 internet data centres.
It will also enable Proximity to continue its expansion, offering national capability and helping customers keep pace with their increasing data needs, ICG-Longbow said.
Kevin Crowley, managing director, ICG-Longbow said: “We are delighted to partner with Proximity and further our track-record of investing in the data centre sector.”
Crowley said the commitment was secured before the outbreak of Covid-19 and in light of the fast-evolving situation across the globe there is even more need for Proximity’s business model.
“The company has a clear vision for the future of data in the UK and an experienced management team; providing a cycle-independent, long-term business with robust fundamentals - a key attraction to ICG.”
The ICG fifth UK property debt fund, which raised £928m in November last year, focuses primarily on investing in self-originated whole loans secured against commercial property. The fund has around £370m dry powder remaining to be invested.
John Hall, managing director, Proximity Data Centres said: “By investing in a network of new internet edge data centres we will empower our customers to keep up with these rising demands, enabling them to succeed in today’s digital-first era.
“Our partnership with ICG provides us with the financial firepower to rapidly develop our data centre portfolio.”