Data centres may well be the next big thing, but growing investor demand is being frustrated by a lack of supply in most countries.
However, a new partnership to create a data centre platform across the Nordics has just been announced. Pictet Alternative Advisors and Brunswick Real Estate have teamed up to invest in and develop sustainable data centres across the region.
The Nordics is regarded as the ideal location for data centres because of its cool climate, its low carbon energy mix and its excellent connectivity. In the last ten years over 200 data centres have been established and all the big technology companies, including Google, Facebook and Microsoft, have developed facilities in the region.
The Pictet/Brunswick partnership’s first move has been the acquisition of Vanda 3, a 63,000 sq m mixed-use property in Stockholm which includes a data centre, a warehouse, offices and printing facilities. The asset is located in the northern suburbs of the Swedish capital and has a number of development opportunities that will add further value.
Centre feeds excess heat into district heating system
Vanda 3, which was acquired from Bonnier Fastigheter with financing provided by Helaba, has tenants operating in power-intense sectors, Pictet and Brunswick said, so it recovers and distributes excess heat and feeds it to the district heating system of Stockholm, thereby reducing the carbon footprint.
The partnership is looking to acquire existing buildings as well as to buy land to develop new projects, said Patrik Andersson, CEO, Brunswick Real Estate (pictured above).
“The partnership with Pictet provides an unparalleled opportunity for Brunswick to use its local expertise in a nuanced market to deliver strong returns. Our active approach to managing assets through development and measurable sustainability improvements is also in line with Pictet’s value-add strategy,” Andersson said.
Brunswick RE is among the Nordics’ leading real estate investors, with a 60-strong team and offices in Stockholm, Helsinki and Copenhagen.
“The Nordics is of strategic importance for Pictet and we aim to deploy up to SEK 5 billion in the region’, said Alexander Thams, head of Nordic real estate, Pictet Alternative Advisors. “Our objective is to keep growing our footprint in the data centre space following this landmark acquisition. The data centre market in the Nordics has significant potential due to its natural cooling and stable business environment.”
The Pictet Group is a Europe-based independent wealth and asset manager with $624 billion in AUM. Its headquarters are in Geneva and it has 30 offices worldwide, including one in Stockholm.