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Principal raises £261m for European data centre fund

Written by Wed 25 Oct 2023

Investment group Principal Asset Management has closed its European data centre fund. The Fund raised £261 million ($316 million) at final close.

The Principal Data Centre Fund I is focused on manage-to-core data centre assets. It received capital commitments from 14 investors, including pension funds, wealth managers, and insurance companies.

Approximately 60% of the Fund is allocated in core European markets of the UK, Ireland, France, Germany, and the Netherlands. The remaining funds are distributed in secondary markets like Spain, Italy, and Switzerland.

“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,” said Sebastian Dooley, Senior Fund Manager at Principal Asset Management.

To date, the Fund has acquired 5 assets allocated in the UK, Dublin, Frankfurt, Amsterdam, and Barcelona.

In September, Principal paid £8.5 million ($10.7 million) for two data centres in Dublin. Situated in Willsborough Industrial Estate, the two data centres span 7,570sqm in total.

The investment company announced the first close of its European Data Centre Fund in February 2022. The initial capital raise for the Fund beat its target, reaching £135.2 million ($163.9 million). The Fund had a hard cap of £392.5 million ($475.8 million).

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Written by Wed 25 Oct 2023

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