Brockton sells 51% stake in £500m Virtus data centres business

By Paul Norman - Friday, October 06, 2017 7:00

Brockton Capital has sold its remaining 51% interest in the £500m VIRTUS Data Centres business to its joint venture partner, ST Telemedia Global Data Centres , a wholly owned subsidiary of ST Telemedia, a strategic investor in communications, media and technology businesses around the globe.

The transaction follows an agreement in June 2015 whereby STT GDC acquired a 49% stake in VIRTUS and was secured as a strategic joint venture partner for the business.

Following Brockton’s initial investment in 2011, VIRTUS has established itself as leading developer and operator of data centres. VIRTUS is now one of the five largest colocation providers in the London market.

During the period of Brockton’s ownership, VIRTUS has observed "exponential growth in demand for data on both a global and local level, predominantly driven by the growth in cloud computing".

Simon Samuels, Partner at Brockton Capital LLP, said “Technology’s impact on the way we all live and work today is massive. In these days of cloud computing, pretty much everything technology related can be tied back to the data centre; from social media, to YouTube, to all the movies you watch and music you listen to online, all that data is sitting on a server in a data centre.”  

Together with STT GDC and VIRTUS management, Brockton grew VIRTUS from a single data centre with circa 27,000 sq ft of Net Technical data centre space, 4MW of lettable IT load and one customer, to a portfolio of six data centres with over 100 customers and the potential to provide over 90MW of lettable IT load across circa 430,000 NTF.

Samuels said: “We are delighted to announce this transaction which marks the end of a highly successful investment for Brockton. Technology is the fastest growing sector on the planet and data centres are the asset class where real estate meets the technology sector. When we first invested in VIRTUS in 2011, we stated our intention at that time to create a £500m data centre business and we’re very pleased this investment has performed in-line with our original expectations. Throughout our investment period, we worked successfully with VIRTUS and STT GDC to capitalise on the favourable demand and supply dynamics in the data centre market to dramatically grow VIRTUS and ensure considerable value accretion for our investors.”

Sio Tat Hiang, Chairman of STT GDC, said: “It has been a fruitful and mutually beneficial partnership with Brockton Capital as joint venture partners. In the last two years, VIRTUS has demonstrated outstanding market growth and significant accomplishments. This additional investment reflects STT GDC’s continued commitment to further VIRTUS’ growth, as well as our confidence in the key UK and European economies.”

Neil Cresswell, CEO at VIRTUS, said: “Brockton Capital have been hugely supportive investors for VIRTUS and we fully appreciate what their professionalism, experience and knowledge has enabled the business to achieve since 2011. At the same time we are thrilled to deepen our relationship with STT GDC. This transaction will help VIRTUS continue to thrive in our market and fuel our ambitious growth plans.”

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