Principal Real Estate has completed the first close of its European data center fund.
Surpassing its initial target, the Principal European Data Centre Fund reached €155 million ($173 million) with subscriptions from seven investors, including asset managers, pension funds and insurance companies located in France, Germany, Spain and Malaysia.
The fund’s total equity hard cap is €450 million ($503 million).
Principal European Data Centre Fund will focus on manage-to-core data center assets. At least 60 percent of the fund will be allocated to the core European markets of Germany, Netherlands, France, the United Kingdom and Ireland, with up to 40 percent in secondary markets such as Spain, Italy and Switzerland.
“We have been evaluating the European data center sector for the last 2–3 years, closely watching demand drivers such as advancements in technology and increased data consumption to determine the right time to launch a fund,” said Paul