GLP, one of the largest independent data centre operators in China is considering raising fresh funds to help expand its data centres platform in China.
The Singapore-based investment manager is seeking to raise about US$500 million from investors in exchange for a minority stake in the platform, according to people familiar with the matter, as reported by Bloomberg. The people asking not to be identified because the matter is private.
A deal could give the China data centres a valuation of about US$4 billion to US$5 billion, they said. GLP has started sounding out potential interest from other digital industry players and other investment funds, people familiar with the matter said. GLP, one of the largest independent data centre operators in China and its assets, including those under construction, will help deliver about 1,400 megawatts (MW) of IT capacity upon completion.
DC platform expansion
The proceeds from the fundraising could help expand GLP’s data centres platform both organically and via acquisitions, the people said. Considerations are preliminary and details such as the size could still change, the people said. Representatives for GLP didn’t immediately respond to requests for comment made via phone and email, Bloomberg said.
Last year, Chinese data centre company GDS Holdings had weighed a combination of its business with GLP’s data centres in China, although talks have stalled over valuation, Bloomberg News has reported.
Data centre deals in Southeast Asia is seeing a decent amount of action. Last year, DigitalBridge Group, a digital infrastructure investment firm, acquired the data centre assets of Hong Kong-based telecommunications provider PCCW for US$750 million.
GLP was founded in 2009 as a global investment manager, developer and operator of logistics real estate. The firm has expanded into areas including data infrastructure, renewable energy and related technologies. It is present in 17 countries and counts about US$120 billion in assets under management.
