Colony Capital Inc. closed its acquisition of secondary equity interests in data center operator DataBank Holdings Ltd. for $185 million.
The deal marks the diversified real estate investment trust's first direct balance-sheet investment in digital real estate and its first exposure to the edge/colocation data center market.
The selling shareholders were Allstate Investments LLC, which keeps a 50% stake in DataBank; and Edgewater Services LLC, also known as Edgewater Funds, which no longer owns an interest in the business. Nuveen retains its original stake in DataBank.
Colony's global head of private equity, Justin Chang, will replace Edgewater's board member on the DataBank board.
DataBank operates 20 data centers across Dallas; Minneapolis; Kansas City, Kansas; Cleveland; Pittsburgh; Salt Lake City; Baltimore; Atlanta; and Indianapolis.