The loan agreement, which was signed before the current coronavirus lockdown period, has been made via CG-Longbow – ICG’s real estate asset management division. It is being used as funding for Proximity’s £80 mln project to provide digital services in close geographical proximity to demand from businesses.

The loan capital comes from ICG’s £929 mln partnership capital fund, ICG-Longbow UK Real Estate Debt Investments V SCSP.

Proximity plans for its network of regional data centres to reach 95% of the UK population, offering local colocation services with low latency and reduced transit costs, by dint of the centres being located physically near users.

Kevin Crowley, managing director of ICG-Longbow, said: 'We are delighted to partner with Proximity and further our track-record of investing in the data centre sector. The commitment was secured before the outbreak of Covid-19 and in light of the fast-evolving situation across the globe there is even more need for Proximity’s business model.

'The company has a clear vision for the future of data in the UK and an experienced management team; providing a cycle-independent, long-term business with robust fundamentals, a key attraction to ICG.'

John Hall, managing director of Proximity Data Centres, said: 'We are proud to be working with Kevin and the team at ICG and look forward to utilising their knowledge & experience of scaling real estate focussed businesses. In today’s connected world, customers are demanding services faster than ever before.

'By investing in a network of new internet edge data centres we will empower our customers to keep up with these rising demands, enabling them to succeed in today’s digital-first era. Our partnership with ICG provides us with the financial firepower to rapidly develop our data centre portfolio.'

ICG invests in loans of between £20 mln - £100 mln for the alternatives sector, also including office refurbishments and redevelopments.