Macquarie Asset Management (MAM) and The Public Sector Pension Investment Board (PSP Investments) today announced an agreement to sell their entire interests, totalling 88%, in AirTrunk to a consortium of investors led and managed by Blackstone.
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As part of this transaction, AirTrunk Founder and Chief Executive Officer, Robin Khuda, will also realise part of his stake. The deal implies an enterprise value of over A$24 billion.
MAM (on behalf of its managed fund and clients) and PSP Investments acquired a majority stake in AirTrunk in 2020. Since then, AirTrunk has grown significantly, expanding from five data centres in Australia, Singapore, and Hong Kong to become a leading hyperscale data centre specialist across 11 sites, including Japan and Malaysia.
The company’s capacity has increased from 450MW to over 1.8GW, with a strong pipeline for future growth.
Ani Satchcroft, co-head of infrastructure for Asia Pacific at MAM, AirTrunk’s majority investor, commented on the sale: “The AirTrunk story is one of genuine partnership between MAM, PSP Investments, and AirTrunk’s world-class team.
"Our journey with AirTrunk, and the drive and foresight of our teams in Asia Pacific, has resulted in AirTrunk expanding its footprint across key markets in the region, achieving a more than eightfold increase in contracted capacity.
"Today’s transaction demonstrates MAM’s ability to identify, invest in, and nurture digital infrastructure assets that are resilient, scalable, and pivotal in meeting today’s burgeoning demand for data, cloud services, and the adoption of artificial intelligence.
“As the world’s largest infrastructure manager, MAM began investing in digital infrastructure more than 20 years ago. We remain committed to leveraging our global expertise and local insights to continue growing businesses and actively shaping industries, generating superior value for our investors and the communities we serve,” Ms. Satchcroft added.
Sandiren Curthan, managing director and global head of infrastructure investments at PSP Investments, said: “Our successful collaboration with MAM and the AirTrunk management team has enabled AirTrunk to become a market-leading independent hyperscale data centre platform in Asia-Pacific from a customer experience, operational, and sustainability standpoint.
“This partnership has not only delivered outstanding results for our beneficiaries but also validates our investment strategy focused on partnering with top-tier management teams and like-minded investors to support infrastructure businesses globally in their growth ambitions while achieving operational excellence,” Mr. Curthan said.
MAM and PSP Investments have also worked alongside AirTrunk management to elevate its ESG and work health and safety (WHS) focus.
The company has introduced initiatives such as a sustainability-linked loan – the largest by a data centre operator globally – and a target of achieving 100% renewable energy by 2030 through both AirTrunk and customer procurement. AirTrunk has also developed a safety culture that is leading in the industry.
Robin Khuda, who will remain with the company as CEO stated: “In 2015, I established AirTrunk to pioneer scalable and sustainable hyperscale data centres in the Asia-Pacific region.
"In under a decade, we’ve built the largest platform in the region, with data centres in all major markets operating as essential digital infrastructure underpinning the digital economy.
“Today’s announcement is a testament to the strength of our platform, vision, execution, and team – the experts and innovators trusted by our customers to deliver and operate, with a passion to ensure sustainability is at the forefront of the finance, design, build, and operations of our data centres.
“The support and expertise from MAM and PSP Investments have been transformational for the company. As we enter our next phase of growth, the AirTrunk management team thank them for their outstanding partnership.
"For AirTrunk, this is just the beginning, as we continue to capture the significant opportunities from the region’s vibrant digital future,” he said.
Over the next five years, approximately US$1 trillion is expected to be spent in the United States on building and supporting new data centres, with an additional US$1 trillion anticipated for data centres outside the country.
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