Principal closes capital raise on first dedicated US data centre fund
Principal Real Estate has reached the final investor close for its first closed-end fund dedicated to developing and acquiring data centres in the United States.
The fund was oversubscribed, raising USD533 million from investors globally.
A total of 15 limited partners committed to the Principal Digital Real Estate Fund. The diverse group of investors included public and corporate pension funds, insurance companies, wealth managers, endowments, and foundations from the US, Canada, Europe, Asia, Latin America, and the Middle East.
The Principal Digital Real Estate Fund will focus on value-add acquisitions, the redevelopment of existing data centres that can be acquired at or below replacement cost, and the development of high-quality, state-of-the-art data centre facilities on a ready-to-fit or turnkey basis. Geographically, capital will be dispensed across the primary U.S. data centre markets, including Dallas, Chicago, Phoenix, Northern Virginia, and Northern California, in addition to select secondary markets such as the Pacific Northwest, Atlanta, Austin/San Antonio, Southern California, and the Northeast.
Principal Real Estate began investing in data centres in 2007 and has since committed over USD1 billion in data centre acquisitions and developments while also owning more than USD1.1 billion in data centre REITs.