Alpha Data Center Fund makes maiden investment

Alpha Investment Partners has agreed to acquire a data center in Frankfurt from its sector-focused real estate fund.

Alpha Investment Partners, the funds management platform of the Singapore-based Keppel Corporation, and Keppel Data Centers Holding have jointly agreed to acquire a data center in Frankfurt for €76 million

In a statement announcing the deal, Alpha Investment Partners said it is the first investment made from the Alpha Data Center (DC) Fund that is currently in market. The Alpha DC Fund, launched in February this year with a $500 million capital raising target, is believed to be among the first blind-pool closed-ended vehicles in Asia specifically aimed at the niche asset class.

A first close of $130 million for the fund was made in July this year.

“Alpha DC Fund’s maiden acquisition of a quality data center facility, less than four months from the fund’s inception, is testament to Keppel Capital’s commitment to create value for investors by drawing on the synergies of the Keppel Group. Through the Alpha DC Fund, investors are able to participate in a fast expanding sector that is underpinned by strong growth trends,” commented Christina Tan, chief executive officer of Keppel Capital and managing director of Alpha.

Following the planned completion of the transaction within the fourth quarter of this year, Alpha DC Fund and Keppel Data Centers Holding will own 60 percent and 40 percent stake in the asset respectively.

The two-storey facility located near the city center will be named Keppel DC Frankfurt 1.

“We are seeing robust demand for high-availability data center space from businesses, financial institutions and cloud providers, stemming from post-Brexit data sovereignty concerns. At the same time, companies are facing pressures to scale their IT infrastructure to keep pace with fast-changing technology trends,” said Thomas Pang, chief executive officer of Keppel Telecommunications & Transportation.