Blackstone Considers Selling AirTrunk Data Centers in Sydney and Melbourne
Blackstone, a global investment firm, is reportedly exploring the sale of two AirTrunk data centers located in Sydney and Melbourne. This decision comes after Blackstone acquired AirTrunk in December. The potential divestiture of these stabilized data centers, each estimated to be worth around A$2 billion ($1.3 billion), is currently under consideration by Blackstone, according to sources familiar with the matter.
The discussions regarding the sale of these data centers have prompted Blackstone to consult with advisors as they weigh their options. The proceeds from the sale of these assets would likely be reinvested to support Blackstone’s continued growth. In addition to considering a sale, AirTrunk is also exploring alternative financing options, such as tapping into the asset-backed securities market, to fuel its expansion plans.
While a formal sales process has not yet commenced, and final decisions have not been reached, Blackstone has the option to retain ownership of the properties. Reports suggest that Blackstone is evaluating various strategies for its AirTrunk assets, with TMT Finance previously highlighting their exploration of potential options.
Representatives for both Blackstone and AirTrunk have refrained from commenting on these speculations at this time.
Background on the Acquisition
In partnership with the Canada Pension Plan Investment Board, Blackstone completed the acquisition of AirTrunk from Macquarie Group and PSP Investments last year. The deal, valued at A$24 billion, including debt and planned capital expenditure, marked a significant investment by Blackstone in the Asia-Pacific region and one of the largest digital infrastructure transactions globally.
Investing in Data Centers
Data centers have emerged as a lucrative investment opportunity for many investors, driven by the rise of artificial intelligence and the stable returns associated with the asset class. Blackstone’s investment in AirTrunk signifies their confidence in the potential growth of the digital infrastructure sector. CEO Steve Schwarzman has expressed Blackstone’s willingness to allocate further investments to accelerate AirTrunk’s expansion and success.
Overall, the potential sale of the AirTrunk data centers in Sydney and Melbourne reflects Blackstone’s strategic evaluation of its investments and commitment to maximizing returns in the evolving digital landscape.
