QuadReal Property Is in Talks to Invest $1 Billion in T5

(Bloomberg) -- QuadReal Property Group Ltd. is in advanced talks to invest $1 billion in T5 Data Centers LLC, according to people familiar with the matter.

Proceeds from the Vancouver-based investor will be used to buy and build new data centers, according to the people, who asked not to be identified because the matter is private. The negotiations are ongoing and it’s not assured a deal will be reached, one of the people said.

A representative for QuadReal, the real estate investment arm of British Columbia Investment Management Corp., declined to comment. QuadReal oversees about C$27.4 billion ($20.6 billion) of the company’s C$145.6 billion in total assets under management. Representatives for T5 didn’t respond to requests for comment.

T5, which is being advised by Greenhill & Co. and Eversheds Sutherland, operates data centers in Ireland as well as U.S. cities including New York, Los Angeles, Atlanta and Charlotte, North Carolina, according to its website.

The company, previously backed by Iron Point Partners LLC -- an investment firm affiliated with billionaire Robert Bass -- has in recent months sold assets including data centers in Texas to Stack Infrastructure.

Institutional investors like QuadReal have been piling into data centers, in part due to attractive returns driven by healthy growth prospects. As part of a $1.1 billion deal that closed in January, Brookfield Infrastructure and its partners established a company called Evoque Data Center Solutions to own and operate AT&T Inc.’s data-center assets.

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