Aareal Bank makes first investment in data centre market

International property lender Aareal Bank is venturing into the data centre market with its first financing deal, a key step in its "Aareal Ambition" growth strategy to diversify its product range.

Data centre

The inaugural deal involves a €160 million financing package for Goodman Group's acquisition of the Frankfurt I Data Centre, strategically located near Frankfurt, a major global internet hub. Aareal Bank played a central role in the transaction, acting as arranger, facility agent, and security agent.
The bank recognized the long-term potential of data centres due to the soaring demand for digital infrastructure and data storage. It aims to significantly expand its data centre portfolio, focusing primarily on European locations like Germany, France, the Netherlands, the UK, and Sweden.
A dedicated team based in Wiesbaden, under the leadership of managing director Severin Schoettmer, will oversee the bank's activities in this new asset class.
Christof Winkelmann, chief market officer and member of Aareal Bank's Management Board, said: "Frankfurt is Europe's largest Internet node, with a data transfer rate of more than 18 Tbps. I'm delighted that we have financed our data centre here in the Rhine-Main region together with our long-term client Goodman Group. Growing digital infrastructure requirements make data centres a highly attractive asset class and an excellent add-on to our portfolio."
Hans Ongena, director Investment Management at Goodman Group, added: "We have been working closely together with Aareal Bank for many years. We value the Bank's high level of expertise and reliability, and are delighted to be partnering again with such a strong player. The completion and refinancing of the Frankfurt I Data Centre expands our portfolio of high-quality, sustainable properties in our focus metropolitan regions and strengthens our position as a leading global data centre project developer and owner.”
White & Case advised Aareal Bank on the transaction, while Taylor Wessing provided legal counsel to Goodman.