pcJ News Briefs – Canada Pension Plan Investment Board (CPPIB) has committed up to US $350 million to Alpha Data Centre Fund (ADCF), with the option to invest another US $150 million.
The ADCF was launched in July 2016 by Alpha Investment Partners Limited, the private fund management arm of Keppel Capital, amid strong interest from institutional investors for quality alternative asset classes. ADCF aims to develop a quality portfolio of new and existing data centre assets in Asia Pacific and Europe, capitalizing on strong demand in this asset class in key cities within these two regions.
CPPIB’s commitment and option will bring the ADCF’s combined and co-investment interest up to US $1 billion, double the Fund’s initial target size of US $500 million. When fully leveraged and invested, the Fund will potentially have assets under management of approximately US $2.3 billion.
Alpha Investment Partners is a real estate investment manager headquartered in Singapore with offices in Seoul, Shanghai, Taipei and Tokyo.
Keppel Capital is the asset management arm of Keppel Corporation Limited, a multinational conglomerate with key businesses in Offshore & Marine, Property, Infrastructure and Investments, providing innovative solutions for sustainable urbanisation.
photo credit: Alpha Investment Partners
Canada Pension Plan Investment Board allocates up to US$350 million in partnership with Alpha Investment Partners and Keppel Data Centres
Toronto, Canada/Singapore (October 12, 2017) – Canada Pension Plan Investment Board (CPPIB) has partnered with Alpha Investment Partners Limited (Alpha) and Keppel Data Centres Holdings Pte. Ltd. (Keppel Data Centres), both of which are part of the Keppel Group, for an initial allocation of up to US$350 million alongside the Alpha Data Centre Fund (ADCF), with the option to invest another US$150 million.
CPPIB’s latest commitment and option will bring the ADCF’s combined and co-investment interest up to US$1 billion, double the Fund’s initial target size of US$500 million. When fully leveraged and invested, the Fund will potentially have assets under management of approximately US$2.3 billion.
ADCF aims to develop a quality portfolio of new and existing data centre assets in Asia Pacific and Europe, capitalizing on strong demand in this asset class in key cities within these two regions. The Fund will leverage the broader Keppel Group’s relationships with key industry occupiers and expertise across a range of management, technical engineering and operational disciplines to deliver energy efficient facilities.
Christina Tan, CEO of Keppel Capital and Managing Director of Alpha, said, “The Alpha Data Centre Fund is a prime example of how we can harness synergy and expertise across the Keppel Group to create value and deliver enhanced returns to investors. The strong interest garnered and successful closing of the Fund are testament to Keppel’s ability to grow our capital platform with investments from quality global institutional investors.”
The ADCF was launched in July 2016 by Alpha, the private fund management arm of Keppel Capital, amid strong interest from institutional investors for quality alternative asset classes. The collaboration taps on Keppel Data Centre’s experience in designing, building and managing data centres for more than a decade. Keppel Data Centres is a 70-30 joint venture between Keppel Telecommunications & Transportation Ltd. and Keppel Land Limited.
“The continued strong growth in data requirements globally has driven demand for quality data centre space, particularly in the Asia-Pacific region where digital infrastructure is relatively under-developed,” said Jimmy Phua, Managing Director and Head of Real Estate Investments Asia, CPPIB. “By investing alongside the Alpha Data Centre Fund, CPPIB is able to gain exposure into this critical sector, in partnership with the Keppel Group, a well-respected partner, leveraging established relationships and broad technical expertise with a focus on sustainability.”
In July 2017, ADCF acquired a 70% stake in the Keppel DC Singapore 4, a carrier-neutral data centre which features approximately 182,000 sq. ft. of gross floor area. In December 2016, ADCF announced its maiden acquisition of a 60% interest in Keppel DC Frankfurt 1 in Germany, a two-storey facility located in close proximity to the city centre and Frankfurt airport.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 20 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo and Sydney, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2017, the CPP Fund totalled C$326.5 billion.
For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn or Twitter.
About Alpha Investment Partners
Alpha Investment Partners (Alpha) is a wholly-owned subsidiary of Keppel Capital, a premier asset manager in Asia and the asset management arm of Keppel Corporation Limited.
Alpha has been adding value for investors by constantly seeking innovative solutions throughout its investment process since 2004.
A manager of both private and public real estate funds, Alpha has an institutional investor base comprising renowned pension plans, financial institutions, fund of funds, insurance companies, endowments and family offices spanning Europe, North America, Asia and the Middle East.
Its private closed-end real estate funds are invested across the risk spectrum in the core, core-plus, value-add and opportunistic space. Each fund has a specific lifespan and strategy to leverage prevailing opportunities, as well as seek a blend of income and capital returns according to its risk profile. Alpha also manages the Alpha Real Estate Securities Fund, an open-ended fund that invests in listed REITs and real estate securities predominantly in Asia.
About Keppel Data Centres
Keppel Data Centres Holding Pte. Ltd. (Keppel Data Centres) is the data centre division of Keppel Telecommunications & Transportation (Keppel T&T). It has a track record of more than a decade in owning, developing and managing high quality carrier-neutral data centre facilities that support mission-critical computer systems.
Keppel T&T is also the sponsor of Keppel DC REIT, the first data centre Real Estate Investment Trust (REIT) listed in Asia and on the Singapore Exchange. Together with assets owned through Keppel DC REIT, Keppel T&T has a global portfolio of 18 data centres located in key data centre hubs across Asia Pacific and Europe.
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