In a significant move, ICG Real Estate, a branch of ICG, has announced the acquisition of a £125 million digital infrastructure portfolio in Central London, currently leased to Vodafone UK. As part of the purchase deal, both parties have agreed to an extension of Vodafone’s lease for an additional 25 years, lasting until 2048. This renegotiation includes adjustments based on the Retail Price Index (RPI), effectively boosting the portfolio’s overall value.

The acquired portfolio, covering 260,000 sq ft, consists of five data exchanges primarily situated in Zone One, Central London’s core area. These data exchanges play a pivotal role in ensuring seamless connectivity for Vodafone’s vast customer base. With the digital realm witnessing a surge in data demand and the advent of new technologies, ICG Real Estate has identified digital infrastructure as a primary investment area.

ICG’s Strategic Real Estate team (ICG SRE) is renowned for its pan-European approach, often collaborating with major corporations to secure crucial assets. This acquisition strategy predominantly involves long-term, index-linked investments, often via sale and leaseback methods, offering an alternative financial solution for businesses.

Chris Nichols, Head of Strategic Real Estate at ICG, expressed his enthusiasm about the partnership with Vodafone, stating, “This collaboration with Vodafone epitomises our commitment to ensuring long-term digital infrastructure while simultaneously amplifying the value for our investors.”

Nichols further elaborated on their future plans, “Our collaboration with Vodafone underscores our capability to ensure seamless transactions and offer tailored solutions for business clients. We’re eager to further nurture our relationship with Vodafone, aiming to optimise and potentially expand the existing asset portfolio.”

Colliers, a leading global real estate service company, played a crucial advisory role for ICG Real Estate during this acquisition and also assisted Vodafone in the lease renewal process, ensuring its continued, long-term utilisation of the assets.