Tuesday 18, April 2017 by Nabilah Annuar

GFH Capital acquires new data centre in Virginia

GFH Financial Group in a statement to the Dubai Financial Market has announced that its wholly-owned subsidiary, GFH Capital (GCL), has announced the signing for a new investment in a US Virginia-based Data centre at a market value exceeding $100 million.

GCL intends to offer the investment for the private placement. The investment is being undertaken in partnership with Corporate Office Properties Trust (COPT), a $5 billion NYSE-listed REIT and one of the leading data centre operators in the US. COPT, in addition to managing the assets, have also made a 20 per cent investment in the portfolio, which is expected to provide investors with attractive semi-annual cash distributions at an annual rate averaging 9.5 per cent over the investment period and an IRR of 12 per cent.

The portfolio consists of two state-of-the-art, built-to-suit data centre facilities located in high technology business parks in the US state of Virginia. The investment provides GFH and its investors with exposure to the positive dynamics of the US real estate market and, in particular, increasing demand for data centres in the US led by growth in cloud services and data storage needs with Virginia serving as top data centre destination. This transaction is expected to reflect positively on GFH's financial results for Q2-2017.

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