Compass Datacenter Facility (from Facebook)
Israel real estate firm Azrieli Group sold its stake in the U.S. company Compass Datacenter for about $900 million. Azrieli owned 32.5% of Compass. Azrieli reported that based on its original investment made in 2019, the firm saw a 44% Internal Rate of Return from Compass.
Based in Dallas, Texas, Compass Datacenter is being acquired by Brookfield Infrastructure Partners L.P. and existing investor Ontario Teachers’ Pension Plan. The overall sale will leave the firm with a $5.2 billion valuation.
Azrieli Group said that the divestment of Compass came as part of the Group’s strategy to identify new growth engines. In 2021, the Group decided to expand its operations and investment in the industry, to enter the European market and to acquire a full holding in Green Mountain, which is currently active in Norway, Germany and England. As the Company reported in recent months, it is continuing to develop this business segment and to enter into significant transactions which have expanded its operations in the segment to other countries in Europe, and to significantly increase the transaction pipeline in Norway with leading hyperscale customers.
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Compass Datacenters, one of Inc. Magazine’s 5000 fastest growing companies, designs and constructs data centers for some of the world’s largest hyperscalers and cloud providers on campuses across the globe. Since its inception, the firm’s sustainability efforts have encompassed the entire data center from its design to its post-delivery performance, including the efficient use of land, water-free cooling and a focus on Green House Gas reduction in the materials used to build our facilities and in their operation.
“I am proud to announce a significant transaction in the data centers industry for the sale of the Group’s minority holdings in Compass,” said Danna Azrieli, Chairwoman of Azrieli Group. “The Company’s investment in Compass was a milestone for the Group for launching our operations in the industry. As the opportunity presented itself, and after the Company explored various alternatives with respect to this minority holding, we chose to sell our holdings with an excellent IRR. I believe in this significant growth engine, and the Group will continue to expand its operations in the sector through Green Mountain.”
The Azrieli Group is Israel’s largest publicly traded real estate company. The firm says it buildsld, owns, and operates landmark office complexes, shopping malls, senior homes, data centers, mixed-use properties, hotels, and long-term rental residences, both in Israel and abroad, and also operates Israel’s leading e-commerce platform Azrieli.com. The firm’s income-producing properties extend over 1.3 million SQM.
