Centuria Capital buys 50% stake in data server provider ResetData
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The news: Real estate funds manager Centuria Capital Group has agreed to acquire a 50% interest in data server provider ResetData for $21 million.
The numbers: As part of the deal, Sydney-based ResetData has entered into a 10-year lease in the Centuria-managed 818 Bourke Street in Melbourne. The premises will become "one of Australia's first AI inferencing and ultra high-density LIC [Liquid Immersion Cooling] data centres", with the potential to lift the property's valuation by 10% to 15% net of costs.
The context: Centuria said the investment aims to "harness tailwinds" from the growth in data storage and artificial intelligence, and will see the group's revenue stream expand into a new business line providing "significant revenue growth potential".
ResetData — which has existing partnerships with companies such as Dell and Nvidia — uses proprietary LIC technology for data centres, designed to provide a smaller size footprint than traditional data centres, less energy consumption than those using air cooling servers, and a reduced carbon footprint. These features enable ResetData to be located in existing office buildings, rather than outer city warehouses, Centuria said.
The group noted that the investment will be funded with its existing debt headroom, and is expected to be earnings neutral in FY25 and accretive to earnings per share from FY26.
What they said: Centuria joint CEO John McBain said: "We view our early investment in ResetData as presenting an early mover opportunity in a rapidly growing sector, providing new revenue growth and a point of difference for Centuria's real estate platform."
"Centuria's corporate acquisition strategy seeks real estate market opportunities that provide strong tailwinds and limited competition," he said.
The source: ASX announcement
