Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

FRANKFURT-The California-based private equity firm GI Partners has sold the last European asset from its debut Fund 1, a data center in Frankfurt, and said the sale completes a realization of over $1 billion in cash proceeds on an initial equity investment of $280 million, giving a 3.7x multiple to invested capital and a 60% gross internal return of investment.

The data center was sold for $28 million to Equinix Holding, a Dutch-registered subsidiary of the NASDAQ-listed Equinix group. Acquired in June 2004, it comprises around 29,000 square meters in total and 9,000 square meters of raised floor space. Fund 1 at its peak held 25 technology buildings, of which 21 were later contributed to the formation of Digital Realty Trust, now a NYSE-listed REIT with an enterprise value of some $6 billion.

Other GI Partners Fund I properties sold include Sunset Gower Studios, located in Hollywood, CA, and Yates Group, a pub operator with locations throughout the UK. GI is currently investing out of its recently-raised GI Partners Fund III, which has secured $2bn of capital commitments from leading institutional private equity and real estate investors.

“The return we have delivered to date from our Fund I is well in excess of the market average and demonstrates the success of our investment strategy,” commented GI’s Executive MD Rick Magnuson. “As we embark on Fund III we are well positioned to leverage the success we’ve achieved from both our Fund I and Fund II investments.” Fund III has already invested 20% of the committed capital and has a strong pipeline of opportunities, he added.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.