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GI sells last remaining property in Fund I

The private equity and real estate investor has sold a Frankfurt data centre for $28m to data services firm Equinix. The technology centre was the final asset to be sold from a 25-building portfolio bought by GI in 2004. The firm made a 3.7x multiple on the deal.

GI Partners has sold the last remaining asset from a portfolio of technology centres originally acquired in 2004.

The Menlo Park, California private equity and real estate firm sold Data Centre 110, in Frankfurt, to data services firm Equinix for $28 million. The 310,000-square-foot property was part of a 25-building portfolio originally bought for $280 million of equity, the firm said in a statement.

The deal was made through the firm’s $526 million Fund I, which closed in 2004. The deal made a gross IRR of 60 percent and a 3.7x multiple. GI contributed 21 of the 25 buildings to the US REIT it formed, Digital Realty Trust.

Fund I also acquired and later exited from real estate investments including Hollywood’s Sunset Gower Studios and the UK pub chain Yates Group. GI is currently investing its $2 billion Fund III, and was recently part of the consortium of private equity investors that helped launched the debt platform, Ladder Capital, led by Brian Harris.

Earlier this month, GI bought a 75 percent stake in a Denver super mall from REIT Macerich for $116 million in cash, assuming a $136.5 million mortgage. Macerich bought the centre for $316.6 million in 2003, data provider Real Capital Analytics said.