Lincoln Rackhouse, Sprott Korea Investment Acquire London Data Center


In its first venture outside the U.S., Lincoln Rackhouse, data center division of Lincoln Property Co., has partnered with Sprott Korea Investment on the acquisition of 145,000-square-foot data center in London's data center submarket of Camberley.

The data center transaction is a partial sale-leaseback with a Fortune 100 financial institution, which has signed a long-term lease for approximately 50% of the facility. Lincoln Rackhouse will lease the remaining space and capacity to enterprise users or a data center operator.

"We are very proud of the data center portfolio we've built in the United States. By adding a quality asset like this in London, one of the world's top data center markets, we are taking our data center platform to new heights," says Martin Peck, executive vice president and leader of Dallas-based Lincoln Rackhouse.

The London Data Center market is one of the most vital digital infrastructure hubs, not only in Europe, but in the global data center landscape. In terms of operational supply, London is second only to Northern Virginia.

"We are honored to complete this transaction successfully, and we are thankful for the opportunity to collaborate with Lincoln Rackhouse," says Seokhyun Yun, CEO of Sprott Korea Investment.

Data center demand is high among Korean institutional investors and operating companies. And, it is rapidly increasing due to the expansion of IoT and Cloud services. "Sprott Korea is looking forward to showing its ability to fulfill client needs for future data center investment opportunities," Seokhyun says.

Despite current hyperscale demand, the high-cost London market was first established with more local enterprise applications. Increased needs from hyperscale, content, carrier, enterprise, IT service and various other customer types have impacted the market, creating a healthy mix of wholesale and retail colocation supply.

"This is a very appealing opportunity given the long site acquisition, construction and electrical capacity procurement lead times that enterprise users and operators can face when entering into or expanding within the London market. This acquisition enables us to facilitate a new customer installation immediately," says Thomas Hill, vice president of acquisitions for Lincoln Rackhouse.

The acquisition was started and brought to fruition as planned despite market upheavals arising from the worldwide COVID-19 pandemic. "To think this transaction was able to be successfully completed during these challenging times is not only personally inspiring, but it’s also a testament to the professionalism and dedication of all involved – our Lincoln and Sprott Korea teams, our attorneys, facility partners and our seller," Peck emphasizes.

About Lincoln Rackhouse

Lincoln Rackhouse is the data center division of Lincoln Property Co. and focuses on helping organizations of all sizes locate, analyze and secure data center space to lease or own. Dallas-based Lincoln Property Co. has earned its reputation as effective, professional managers of residential and commercial properties with more than 50 years of experience in building, owning and managing one of the largest commercial real estate portfolios in the United States. With 20 years of experience sourcing mission critical data centers, Lincoln Rackhouse offers unparalleled market and industry knowledge with an unbiased approach in fulfilling technology requirements.

About Sprott Korea Investment

Sprott, a subsidiary of Sprott Inc., has extensive experience investing in global energy projects, particularly renewable projects in North America. Sprott was founded in 2012 and has invested in over 1 GW in renewable energy in the United States, Chile, Sweden and Mexico with Korean strategic and financial investors.

Recent Deals

Interested in advertising your deals? Contact Edwin Warfield.