L&G expands science and tech property investment via UK data centre deal
Legal & General has expanded its investment in science and technology property assets with a new UK data centre deal.
The UK insurer’s early-stage investment arm has made a “substantial investment” in The Kao Data Campus, a 230m data centre development servicing the London to Cambridge corridor.
Legal & General Capital has partnered with existing investors in Kao, Goldacre Noé Group, in a deal which ll allow Kao to capitalise on emerging opportunities both in terms of industry and geography.
Kerrigan Procter, the CEO of Legal & General Capital, said: “With a focus on creating thriving cities, Legal & General looks to make investments that are focused on creating sustainable communities with good employment opportunities, high quality and varied housing in a digitally-connected and clean environment.
“We believe that data centres are an integral part of a city’s digital transformation, enabling connections to a broader digital infrastructure and offering synergies across our wider future cities investment strategy.”
In October last year, Legal & General set up a £360m UK science and technology property partnership with property firm Bruntwood. The 50:50 partnership and will invest capital, property and intellectual assets into a new company known as Bruntwood SciTech.
Matteo Colombo, a director of strategic private capital investments at Legal & General Capital said: “As technology continues to evolve and our future cities become more connected, we see data centres as critical infrastructure of national importance.
“At a time of increased sensitivity around data sovereignty, the UK lacks its own flagged data centre platform. We see a market gap, and Kao presents a unique opportunity to build and create a leading UK proposition.”
David Bloom, founder of Goldacre, said: “This significant partnership is a landmark moment, both for the continued growth of Kao Data and for the development of the wider UK data centre industry.
“With this substantial injection of capital, Kao Data is uniquely well-placed to strengthen its position as an innovative, performance-led business.”