Spark data centre portfolio catching Stonepeak's eye
Data centre valuations have reached giddy heights in the past year as funds seek to gain exposure to the assets because of big demand for data storage in artificial intelligence.
Stonepeak appears to be continuing its unrelenting march when it comes to investing in the Australian and New Zealand infrastructure space, with the global group believed to be weighing a move to buy Spark's data centre portfolio that may sell for about $800m.
The US infrastructure investor that counts former Macquarie banker Darren Keogh in its top ranks is considering a purchase of Australia's largest diagnostic imaging provider, I-Med, and recently fended off competition from Williams and GIP to acquire a 40 per cent interest in Woodside's Louisiana-based LNG Infrastructure.
Stonepeak is listed in New York with more than $US50bn of assets under management and it joins groups like Canadian pension fund CDPQ and private equity firms like KKR, EQT and Pacific Equity Partners in considering a purchase of the assets across the Tasman.
The data centres are up for sale through Jarden.
The process has launched but is in its early stages as Spark seeks to get money through the door to pay down debt.
The data centre revenue increased 13.6 per cent in the six months to December to $NZ25m, as billing of Spark's 22MW capacity increased.
Data centre valuations have reached giddy heights in the past year as funds seek to gain exposure to the assets because of big demand for data storage in artificial intelligence.
Spark's data centre annual earnings before interest, tax, depreciation and amortisation is about $NZ30m.
Last year, the sale of a stake in the Morrison-owned Canberra Data Centres valued the asset at about 30 times earnings. That valuation uplift was fuelled by an earlier bullish valuation for the $24bn AirTrunk Australian data centre deal last year, sold to Blackstone and its backers.
Spark has about 15 data centres and it is located in a cost-effective way to get into the heart of New Zealand's core telecoms network, allowing both domestic and international services to customers.
Spark is New Zealand's largest telco and listed in both Australia and New Zealand.
Its share price is down about 50 per cent in the past year.
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