T5 data centers could very soon become the property of Macquarie Group Ltd if the deal between the two companies closes. The matter is still private and most of the information about the deal is from knowledgeable individuals who would rather remain anonymous.
If things go as planned, we could hear of a transaction that will value T5 data centers at $800 million. The primary stakeholders in T5 data centers is Iron Point Partners LLC, an investment firm affiliated to billionaire Robert Bass.
Image of a data center room
For the deal to go through, however, it must be sanctioned by the US Committee on Foreign Investment. While the deal sounds exciting, there is no guarantee that it will close. Neither Iron Point, T5 nor Macquarie accepted to respond on the status of the deal.
Macquarie Wants to Invest in Other Sections of American Economy
Macquarie’s advisory and principal investing arm is responsible for seeing the T5 data center buyout go through. Macquarie Capital is also contemplating investing in the American real estate market.
For example, it wants to buy an interest in Stonehenge Management LLC, an American apartment owner. Macquarie also wants to partner with RHP Properties which owns a manufactured-housing portfolio.
There are times when Macquarie Capital’s investment efforts may overlap with funds control of Macquarie’s Infrastructure and Real Assets.
So far, Macquarie Infrastructure and Real Assets has generated at least $3.84 billion making it the fourth largest infrastructure fund in North America as of May.
T5’s Data Center Portfolio
T5 runs data centers in Atlanta, New York, Dallas, Los Angeles and Portland, Oregon. It also has data centers in Ireland. T5 together with IPI Data Center Partners Management LLC and Hillwood are developing a data center campus in Fort Worth, Texas.
IPI is a joint venture between Iconiq Capital LLC and Iron Point. Iconiq Capital manages funds for tech titans like Mark Zuckerberg and Sheryl Sandberg.
Why Companies like Macquarie Are Eyeing the Data Center Business
Data center customers are reliant on what it offers
What attracts institutional investors like Macquarie to data centers is the stable cash flow and defensive nature. Data center customers are usually super reliant on the services.
Brookfield Infrastructure, another institutional investor bought AT&T Inc.’s data centers for $1.1 billion in June.