HMC Capital Secures $300m for Data Centre Acquisition

October 24, 2024 01:23 PM AEDT | By Team Kalkine Media

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HMC Capital Secures $300m for Data Centre Acquisition — Image source: shutterstock

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Highlights

HMC Capital sets up a $300 million raise for a major data centre acquisition.

The acquisition includes Sydney-based Global Switch Australia.

Plans are in place for a $2 billion digital infrastructure portfolio.

HMC Capital (ASX:HMC) is taking significant steps to strengthen its position in the digital infrastructure sector by securing a $300 million raise. The funds are expected to support its acquisition of Global Switch Australia, a Sydney-based data centre owner. This acquisition forms part of a larger $1.93 billion deal that will boost the company’s portfolio.

The acquisition of Global Switch Australia was first reported earlier this month, and HMC Capital has now signed terms to finalize the deal. The addition of this data centre is seen as the foundation for HMC Capital’s broader digital infrastructure strategy, which aims to build a $2 billion portfolio of assets. This portfolio will focus on both Australian and US assets, providing HMC Capital with a wider geographical footprint in the digital infrastructure space.

The $300 million raise will be essential in completing the acquisition, and HMC Capital has paused its trading on the ASX to facilitate the process. The raise will involve four financial institutions, which have been mandated overnight. These institutions include Goldman Sachs, UBS, Macquarie Capital, and JPMorgan. Although the exact terms of the raise remain undisclosed, this marks a key moment in HMC Capital’s expansion plans.

As the demand for data centres grows in the digital era, HMC Capital is positioning itself to tap into the rising demand for digital infrastructure. Global Switch Australia is set to become a cornerstone asset for the company, aligning with its goal of growing a diverse and robust portfolio across two continents.

This acquisition could signal the start of further growth for HMC Capital in the digital space as the company looks to capitalize on opportunities in both Australia and the US markets.

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