RAISING ITS OWNERSHIP INTEREST TO 36%
Data center service provider CoreSite, has just secured an additional $570 million investment from Stonepeak, on behalf of certain affiliated investment vehicles.
CoreSite is a subsidiary of American Tower Corporation, following the completion of its acquisition in January 2022 at $10.1 Billion. In July, American Tower Corporation announced that Stonepeak, an infrastructure investment firm, will acquire an ownership interest of approximately 29% in American Tower’s US data center business through a $2.5 billion investment in common equity and mandatorily convertible preferred equity.
The latest investment of $570 million follows Stonepeak’s initial $2.5 billion investment that was completed in August 2022, which on a fully converted basis and based on the currently outstanding equity, now represents an approximately 36% stake in American Tower’s U.S. data center business.
As announced, the conversion is expected to occur four years from the date of the initial closing in August 2022. The upsize or additional investment transaction which was completed on October 20, 2022 comprises both common equity and mandatorily convertible preferred equity, on the same terms and valuation as the initial investment.
For the latest transaction, J.P. Morgan served as lead financial advisor to American Tower, who is also being advised by CDX Advisors. Gottlieb Steen & Hamilton LLP served as principal legal advisor to American Tower, who is also being advised by Sullivan & Worcester LLP with respect to certain REIT and tax matters. MUFG Bank, Ltd. served as sole financial advisor to Stonepeak while Sidley Austin LLP served as principal legal advisor to Stonepeak.
Recently, CoreSite announced its footprint expansion in the Miami market with the acquisition of a freestanding 103,000 square foot data center (MI2) which is located at 2100 NW 84th Avenue in Doral, Florida. CoreSite also owns and operates a 43,000 square foot data center (MI1) in downtown Miami, precisely at 2115 NW 22nd Street which will be interconnected with MI2.
Earlier this year, CoreSite also announced that it plans to develop a new Silicon Valley data center facility at its 2905 Stender Way site in Santa Clara, California. Codenamed SV9, the new data center is designed to deliver 34MW of critical power capacity with a space of 200,000 square feet.