Principal Asset Management has raised €297m for its European data centre fund at close.
The Principal European Data Centre Fund received capital commitments from 14 investors, including pension funds, wealth managers, and insurance companies located in Germany, France, Spain, Japan, Malaysia, Singapore, and the US.
In February last year, IPE Real Assets reported that Principal’s real estate team had raised an initial €155m for the European data centre fund, a vehicle with a €450m hard cap target.
The manager said the fund, which focuses on manage-to-core data centre assets, has so far acquired five assets, located in Barcelona, the UK, Amsterdam, Dublin and Frankfurt.
At least 60% of the fund is allocated to the core European markets of Germany, Netherlands, France, UK, and Ireland, with up to 40% in secondary markets such as Spain, Italy, and Switzerland, Principal said.
Sebastian Dooley, senior fund manager, Principal Asset Management, said: “Given the highly specialised and niche nature of the data centre industry, we believe experience and access are critical to successful execution. As an active commercial real estate investor for more than 60 years — including more than 14 years in the data centre sector—we have witnessed the asset class evolve and adapt to the changing needs.
”We believe this final close solidifies our strong position as we continue our acquisition plans across Europe. Data centres present a unique opportunity for real estate investors. With growth and defensive attributes, the data centre industry has proven resilient in both economic downturns and periods of economic expansion.”
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