OTPP sells Australia data center assets for $793m

The deal will see Equinix gain control of 10 data centers across six cities comprising a total of 80,000 square meters, 90% of which is directly owned, according to a statement. Following the transaction, which is awaiting regulatory approval and expected to close early next year, Equinix will have 40 centers in the Asia-Pacific region and 200 centers worldwide in 52 markets.

OTPP acquired Metronode in 2013 when it bought a 70% stake in the telecom assets of Leighton Holdings - which included Metronode, Nextgen Networks, and cloud services provider Infoplex - at a valuation of A$885 million. It later reorganized the three companies as Nextgen Group, with Leighton, renamed CIMIC Group, exiting its remaining stake to the pension fund last year.

The Metronode sale marks OTPP’s third and final exit from Nextgen. It offloaded Infoplex to UK-based cloud software provider Bulletproof Networks for A$3.6 million and last year divested Nextgen’s network assets to Vocus Communications for A$861 million.

"This investment directly fits our strategy of working with companies with strong management teams and growth prospects to add value for all stakeholders," said Jane Rowe, senior managing director for private capital at OTPP. "We remain very interested in investing in Australia, and are pleased with this positive outcome for all involved including our members, Metronode, its new owner and their customers as they move forward in their next phase of growth."

OTPP is Canada’s largest single-profession pension plan, with C$180.5 billion ($140 billion) in global assets under management as of June 2017. According to its most recent annual report, Asia – including Australia and New Zealand – comprised 6% of OTPP’s investment portfolio as of December 2016.

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• Topics
• Australasia
• Trade sale
• Technology
• Australia
• TMT
• Infrastructure
• OTPP