Lincoln Rackhouse and Sprott Korea Investment acquires data centre in London
Lincoln Rackhouse, the data centre division of Lincoln Property Co., has collaborated with Sprott Korea Investment on the acquisition of a 145,000-sqf data centre in London's data centre submarket of Camberley.
This is the company’s first venture outside the US. The data centre transaction is a partial sale-leaseback with a Fortune 100 financial institution, which has signed a long-term lease for 50% of the facility.
Lincoln Rackhouse will lease the remaining space and capacity to enterprise users or a data centre operator.
"We are very proud of the data centre portfolio we've built in the United States,” said Martin Peck, executive vice president and leader of Dallas-based Lincoln Rackhouse.
“By adding a quality asset like this in London, one of the world's top data centre markets, we are taking our data centre platform to new heights."
The acquisition was started and brought to fruition as planned despite market upheavals arising from the Covid-19 pandemic.
"To think this transaction was able to be successfully completed during these challenging times is not only personally inspiring, but it’s also a testament to the professionalism and dedication of all involved – our Lincoln and Sprott Korea teams, our attorneys, facility partners and our seller," Peck added.
The company said that data centre demand is high among Korean institutional investors and operating companies, and it is increasing due to the expansion of IoT and Cloud services.
"We are honoured to complete this transaction successfully, and we are thankful for the opportunity to collaborate with Lincoln Rackhouse," said Seokhyun Yun, CEO of Sprott Korea Investment.
"Sprott Korea is looking forward to showing its ability to fulfil client needs for future data centre investment opportunities.”
Increased needs from hyperscale, content, carrier, enterprise, IT service and various other customer types have impacted the market, creating a healthy mix of wholesale and retail colocation supply, according to the company.
"This is a very appealing opportunity given the long site acquisition, construction and electrical capacity procurement lead times that enterprise users and operators can face when entering into or expanding within the London market,” said Thomas Hill, vice president of acquisitions for Lincoln Rackhouse.
“This acquisition enables us to facilitate a new customer installation immediately."