Data centre builder Proximity inks €28m loan with ICG

Intermediate Capital Group (ICG) has loaned £25 mln (€28 mln) to IT infrastructure firm Proximity Data Centres, which is developing 18 data centres in the UK.

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.