Macquarie AM, PSP Investments sell AirTrunk stake to Blackstone, CPP Investments

Macquarie Asset Management (MAM) and Canada's Public Sector Pension Investment Board (PSP Investments) have sold the entirety of their respective interests in AirTrunk to private equity giant Blackstone and Canada Pension Plan Investment Board (CPP Investments) in a deal worth over $24 billion.

Under the deal, Blackstone will be the majority owner, with CPP Investments taking a 12% stake.

"This is Blackstone at its best - leveraging our global platform to capitalize on our highest conviction theme. AirTrunk is another vital step as Blackstone seeks to be the leading digital infrastructure investor in the world across the ecosystem, including data centers, power and related services," Blackstone president and chief operating officer Jon Gray said.

MAM and PSP Investments acquired 88% of AirTrunk in 2020, which saw it expanded from five data centres in Australia, Singapore, and Hong Kong to 11 sites, including Japan and Malaysia. The company's capacity portfolio has also increased from 450 megawatts to over 1.8 gigawatts.

AirTrunk also introduced a string of ESG and work health and safety initiatives throughout the partnership, including a sustainability linked loan.

Commenting, Ani Satchcroft, co-head of infrastructure for Asia Pacific at MAM, said: "Today's transaction demonstrates MAM's ability to identify, invest in, and nurture digital infrastructure assets that are resilient, scalable and pivotal in meeting today's burgeoning demand for data, cloud services and the adoption of artificial intelligence."

"We remain committed to leveraging our global expertise and local insights to continue growing businesses and actively shaping industries, generating superior value for our investors and the communities we serve."

Sandiren Curthan, managing director and global head of infrastructure investments at PSP Investments, said the collaboration has consolidated AirTrunk's position as an "independent" hyperscale data centre platform in APAC.

"This partnership has not only delivered outstanding results for our beneficiaries but also validates our investment strategy focused on partnering with top-tier management teams and like-minded investors to support infrastructure businesses globally in their growth ambitions while achieving operational excellence," Curthan said.

Meantime, CPP Investments global head of real assets and head of Europe Max Biagosch said: "We are delighted to partner with Blackstone and the AirTrunk management team to continue growing the business."

"This investment represents another milestone in our broader data centre strategy, further enhancing our footprint in the region to the benefit of CPP contributors and beneficiaries. It is also a great example of close collaboration across the fund, with our Infrastructure and Real Estate teams working together seamlessly to underwrite this investment."

AirTrunk founder and chief executive Robin Khuda will remain in his role, while realising part of his AirTrunk stake as part of the transaction.

Khuda said he believes the digital infrastructure provider will continue to thrive.

"Today's announcement is a testament to the strength of our platform, vision, execution, and team - the experts and innovators, trusted by our customers to deliver and operate, with a passion to ensure sustainability is at the forefront of the finance, design, build and operations of our data centres," he said.

"As we enter our next phase of growth... we continue to capture the significant opportunities from the region's vibrant digital future."