New Zealand’s HRL Morrison considers £2.5 billion acquisition of UK’s Ark Data Centres

HRL Morrison & Co. is considering a £2.5 billion acquisition of UK-based operator Ark Data Centres.

Internal sources told Bloomberg that HRL Morrison is one of two final bidders at advanced stages of discussion. This acquisition, if completed, would represent a significant expansion of HRL Morrison’s portfolio in the European data centre market.

Ark Data Centres’ Facilities and Valuation

Ark Data Centres currently owns and operates three data centres in the London metro area: Cody Park, Meridian Park, and Spring Park. Additionally, there are three sites under construction located in West London, Chertsey and Hayes.

These facilities  contribute to the company’s valuation, as does the company’s client base, which includes a recent seven-year commitment from the UK government.

Ark Data Centres reported a 41% increase in turnover to £139 million for 2021, and recorded an operating loss of £4.6 million.

Approximately 12 months ago, Ark secured a £700 million loan from ING partially based on their environmental impact and sustainability goals.

The loan was intended to cover expansion of Ark’s data centre campuses and corporate restructuring. At the time, the loan was called ‘one of the largest sustainability-linked loans ever done for a UK data centre operator’, another important milestone for the company and reflective of the way Ark has positioned itself in the market as a leading sustainable data centre operator.

HRL Morrison’s recent acquisitions and european leadership

HRL Morrison is a leading alternative asset manager specialising in infrastructure investment. Recently, the company acquired connectivity company Lyntia, which operates long-haul and urban fibre connectivity throughout Spain.

This, combined with the potential acquisition of Ark Data Centres, represent the initial investment activities of the newly-appointed HRL Morrison European leadership team, signaling a strong focus on expanding their presence in the data centre and connectivity sectors across Europe.

The potential acquisition of Ark Data Centres by HRL Morrison highlights the continued importance of data centre infrastructure, as businesses increasingly rely on digital services and remote work solutions.

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