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Intends to list data centre assets

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HMC Capital ( HMCLF ) taps into AI frenzy

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Shares on a trading halt

By Rishav Chatterjee

Oct 24 (Reuters) - Asset manager HMC Capital ( HMCLF )

will acquire Global Switch Australia in A$1.94 billion ($1.29

billion) deal, the Australian firm said on Thursday, as the

company looks to tap into the booming data centre sector.

The data centre assets under the deal will anchor a real

estate play and establish a platform that the firm, founded and

backed by banker-turned-investor David Di Pilla, intends to

list.

HMC will raise A$300 million at A$8.75 per share to fund the

acquisition. The company's shares were placed on a trading halt

before the announcement was made.

The offer price for the share placement represents a 5%

discount compared to HMC's closing price on Wednesday.

Four years ago, the federal government banned government

agencies from using Global Switch Australia, which owns two

major developments in inner Sydney, over data security concerns

HMC Capital's ( HMCLF ) takeover comes as a Blackstone-led

consortium recently acquired larger data centre group AirTrunk

for over A$24 billion.

The global surge in demand for data centres, driven by the

rise of artificial intelligence, has prompted HMC to expand into

infrastructure-style investments.

"Data centres are very much a 'hot ticket item' with the

AI hype-train showing no signs of slowing down, and as such

companies like HMC are keen to gain a foothold in this area,"

said Tim Waterer, market analyst at KCM Trade.

The asset manager said it would establish a global

digital infrastructure platform, which would include the data

centre operator and a new institutional unlisted fund managed by

HMC.

The asset manager acquired US-based digital

infrastructure asset manager StratCap last year, and has said it

is exploring a data centre REIT.

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($1 = 1.5072 Australian dollars)