Quadrant exits Canberra Data Centres

Australian pension fund CSC and infrastructure investment company Infratil have teamed up to take a 96 percent stake in CDC.

Sydney-based private equity firm Quadrant Private Equity has sold its stake in Canberra Data Centres to Australian pension fund Commonwealth Superannuation Corporation (CSC) and New Zealand-based infrastructure and energy investment group Infratil for an undisclosed amount.

CSC and Infratil each bought a 48 percent stake in the business. CDC management, led by chief executive Greg Boorer, will take the remaining 4 percent.

Infratil, which is managed by investment management firm Morrison & Co, paid A$392 million ($283 million; €252 million) for its share, the firm said in a statement.

Following the completion of the deal, Infratil and CDC will have 50/50 governance rights with Greg Boorer continuing on the board.

Quadrant acquired a 45 percent stake in September 2014 for A$140 million through its Quadrant Private Equity No. 4, a 2014-vintage vehicle that raised A$850 million after just one month in market, as reported by Private Equity International.

It has invested more than 60 percent of Fund 4 and generated a gross investment internal rate of return of 26 percent, Quadrant said on its website. Other investments from the fund include medical oncology services provider ICON Cancer Centre, pet food business Real Pet Food Company, food services and distribution company Superior Food Group and restaurant group Urban Casual Dining.

Quadrant has raised more than A$2.5 billion of private equity funds and has invested in 59 businesses, of which 48 have been exited.

CSC manages the retirement savings of Australian government employees and defence force members. It has made fund investments in Invesco Australia, Anchorage Capital, Macquarie Investment Management, State Street Global Advisors and Schroder Investment Management Australia.

New Zealand and Australia-listed Infratil invests in energy, public transport and social infrastructure sectors. It owns Wellington airport and has investments in the retirement sector in New Zealand and Australia. In 2010, the company purchased Kiwi fuel distributor Z Energy alongside the New Zealand Superannuation Fund (NZ Super), after which it listed on the New Zealand and Australian stock markets

CDC is the largest provider of outsourced data centre co-location services to the Australian Federal Government, including the Department of Defence, and private sector consumers. Based in Canberra, it currently manages and operates three facilities and two data centre campuses, with two greenfield development opportunities underway.

The deal is subject to Foreign Investment Review Board approval and is expected to close in late July 2016.

Quadrant declined to comment.