Blackstone and CPP Investments to Acquire AirTrunk in A$24 Billion Deal

Blackstone and CPP Investments to Acquire AirTrunk for Over AUD 24 Billion

Approval pending from the Australian Foreign Investment Review Board. Global investment firm Blackstone, along with the Canada Pension Plan Investment Board (CPP Investments), has agreed to acquire the Asia-Pacific region data center platform AirTrunk from Macquarie Asset Management and the Public Sector Pension Investment Board. According to the official release, the deal values AirTrunk at over AUD 24 billion, marking Blackstone's largest investment in the Asia-Pacific region. Also Read: AirTrunk Opens AI-Ready 150 MW Data Centre in Malaysia Blackstone noted that AirTrunk is the largest data center platform in the Asia-Pacific region, operating across Australia, Japan, Malaysia, Hong Kong, and Singapore. AirTrunk has more than 800 megawatts (MW) of capacity committed to customers and owns land that can support over 1 gigawatt (GW) of future growth across the region. Blackstone said: "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 Real Estate added: "Digital infrastructure is experiencing unprecedented demand driven by the AI revolution as well as the broader digitisation of the economy. Prior to AirTrunk, Blackstone's portfolio included USD 55 billion in data centers, including facilities under construction, along with over USD 70 billion in prospective pipeline development." "This transaction highlights the strength of the AirTrunk platform in a high-performing sector as we capture the next wave of growth from cloud services and AI and support the energy transition in Asia-Pacific. We look forward to working with Blackstone and CPP Investments and benefiting from their scale capital, sector expertise, and valuable network across various local markets, which will help support the continued expansion of AirTrunk," AirTrunk added. Blackstone said this deal is part of a broader trend, with an expected USD 2 trillion in global capital expenditures on data centers over the next five years. It is capitalising on this movement as a leading global investor in data centers. Also Read: Digital Realty, Blackstone to Develop USD 7 Billion Hyperscale Data Centers Blackstone has previously invested in data center companies such as QTS, Coreweave, and Digital Realty and is also focusing on energy needs through investments in companies like Invenergy, the largest independent renewables developer in the United States. The transaction is subject to approval from the Australian Foreign Investment Review Board.

Blackstone : Announces Agreement to Acquire AirTrunk in a A$24B Transaction

Sydney - September 4, 2024 - Funds managed by Blackstone Real Estate Partners, Blackstone Infrastructure Partners, Blackstone Tactical Opportunities, and Blackstone's private equity strategy for individual investors, along with the Canada Pension Plan Investment Board ("CPP Investments"), have entered into a definitive agreement to acquire AirTrunk, the leading Asia Pacific data center platform, from Macquarie Asset Management and the Public Sector Pension Investment Board, for an implied enterprise value of over A$24 billion. This represents Blackstone's largest investment in the Asia Pacific region. The transaction is subject to approval from the Australian Foreign Investment Review Board. AirTrunk is the largest data center platform in the Asia Pacific region, with a sizeable presence in Australia, Japan, Malaysia, Hong Kong, and Singapore. It has more than 800MW of capacity committed to customers and owns land that can support over 1GW of future growth across the region. Jon Gray, President and Chief Operating Officer of Blackstone, said: "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." Sean Klimczak, Global Head of Blackstone Infrastructure and Nadeem Meghji, Global Co-Head of Blackstone Real Estate, said: "Digital infrastructure is experiencing unprecedented demand driven by the AI revolution as well as the broader digitization of the economy. Prior to AirTrunk, Blackstone's portfolio consisted of US$55 billion of data centers including facilities under construction, along with over US$70 billion in prospective pipeline development. We look forward to partnering with the outstanding AirTrunk management team to further accelerate its growth." Robin Khuda, Founder and Chief Executive Officer of AirTrunk, said: "This transaction evidences the strength of the AirTrunk platform in a strong performing sector as we capture the next wave of growth from cloud services and AI and support the energy transition in Asia Pacific. We look forward to working with Blackstone and CPP Investments and benefitting from their scale capital, sector expertise and valuable network across the various local markets, which will help support the continued expansion of AirTrunk." It is expected that there will be approximately US$1 trillion of capital expenditures in the United States over the next five years to build and facilitate new data centers, with another US$1 trillion of capital expenditures outside the United States. Blackstone is capitalizing on this movement as a leading investor globally in data centers. Blackstone has invested in both the debt and equity of other data center companies, including as owner of QTS, the fastest growing data center company in the world, Coreweave and Digital Realty. Blackstone is also focused on addressing the sector's power needs in many differentiated ways, including as an investor in power and utility companies, such as Invenergy, the largest independent renewables developer in the United States. Including capital expenditure for committed projects About Blackstone Blackstone is the world's largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than US$1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

Blackstone Announces Agreement to Acquire AirTrunk in a A$24B Transaction

Funds managed by Blackstone Real Estate Partners, Blackstone Infrastructure Partners, Blackstone Tactical Opportunities, and Blackstone's private equity strategy for individual investors, along with the Canada Pension Plan Investment Board ("CPP Investments"), have entered into a definitive agreement to acquire AirTrunk, the leading Asia Pacific data center platform, from Macquarie Asset Management and the Public Sector Pension Investment Board, for an implied enterprise value of over A$24 billion. This represents Blackstone's largest investment in the Asia Pacific region. The transaction is subject to approval from the Australian Foreign Investment Review Board. AirTrunk is the largest data center platform in the Asia Pacific region, with a sizeable presence in Australia, Japan, Malaysia, Hong Kong, and Singapore. It has more than 800MW of capacity committed to customers and owns land that can support over 1GW of future growth across the region. Jon Gray, President and Chief Operating Officer of Blackstone, said: "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." Sean Klimczak, Global Head of Blackstone Infrastructure and Nadeem Meghji, Global Co-Head of Blackstone Real Estate, said: "Digital infrastructure is experiencing unprecedented demand driven by the AI revolution as well as the broader digitization of the economy. Prior to AirTrunk, Blackstone's portfolio consisted of US$55 billion of data centers including facilities under construction, along with over US$70 billion in prospective pipeline development. We look forward to partnering with the outstanding AirTrunk management team to further accelerate its growth." Robin Khuda, Founder and Chief Executive Officer of AirTrunk, said: "This transaction evidences the strength of the AirTrunk platform in a strong performing sector as we capture the next wave of growth from cloud services and AI and support the energy transition in Asia Pacific. We look forward to working with Blackstone and CPP Investments and benefitting from their scale capital, sector expertise and valuable network across the various local markets, which will help support the continued expansion of AirTrunk." It is expected that there will be approximately US$1 trillion of capital expenditures in the United States over the next five years to build and facilitate new data centers, with another US$1 trillion of capital expenditures outside the United States. Blackstone is capitalizing on this movement as a leading investor globally in data centers. Blackstone has invested in both the debt and equity of other data center companies, including as owner of QTS, the fastest growing data center company in the world, Coreweave and Digital Realty. Blackstone is also focused on addressing the sector's power needs in many differentiated ways, including as an investor in power and utility companies, such as Invenergy, the largest independent renewables developer in the United States. About Blackstone Blackstone is the world's largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than US$1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram. Including capital expenditure for committed projects

Blackstone and CPP Investments to acquire AirTrunk By Investing.com

SYDNEY - Blackstone, along with the Canada Pension Plan Investment Board (CPP Investments), has reached a definitive agreement to purchase AirTrunk, a key data center operator in the Asia Pacific region, for an implied enterprise value surpassing A$24 billion. This deal marks Blackstone's most significant investment in Asia Pacific to date. AirTrunk, recognized as the largest data center platform in Asia Pacific, boasts over 800MW of capacity already committed to customers. Additionally, the company owns land that can support the development of over 1GW of future capacity across the region, including in Australia, Japan, Malaysia, Hong Kong, and Singapore. Jon Gray, President and COO of Blackstone, highlighted the acquisition as a strategic move aligning with Blackstone's objective to become the world's leading digital infrastructure investor. The investment in AirTrunk is expected to bolster Blackstone's already substantial data center portfolio, which includes US$55 billion of data centers and more than US$70 billion in prospective pipeline development. The transaction is pending approval from the Australian Foreign Investment Review Board and is seen as a response to the escalating demand for digital infrastructure, fueled by the AI revolution and the broader transition to a digital economy. Robin Khuda, the Founder and CEO of AirTrunk, welcomed the acquisition, expressing confidence in Blackstone and CPP Investments' ability to support AirTrunk's continued growth through their scale capital, sector expertise, and network across local markets. Blackstone's investment in AirTrunk is part of a broader trend, with approximately US$1 trillion expected to be spent in the United States over the next five years on building and facilitating new data centers, and an equivalent amount anticipated to be spent internationally. The information provided in this article is based on a press release statement. In other recent news, the National Football League (NFL) has approved private equity firms, including Ares Management (NYSE:ARES), Arctos Partners, Sixth Street, and a consortium comprising Blackstone, Carlyle, CVC, and Dynasty Equity, to acquire up to 10% stakes in its teams. This decision marks a pivotal shift in the NFL's ownership structure. In related news, Blackstone Group (NYSE:BX) is considering the sale of Clarion Events, which could value the company at approximately $2.6 billion. Preliminary discussions have already taken place with potential buyers, including private equity firms CVC and KKR. Blackstone has also experienced significant changes in its leadership and portfolio. The company recently appointed Wesley LePatner as the new CEO of Blackstone Real Estate Income Trust, Inc., effective January 1, 2025. Furthermore, Blackstone Growth and affiliated funds have acquired a majority investment in M3, a leading hospitality-focused accounting software provider in North America. This partnership aims to accelerate M3's growth and enhance product development. Redburn-Atlantic recently initiated coverage on Blackstone with a Neutral rating, highlighting the company's substantial exposure to real estate and private equity. The firm noted Blackstone's potential to benefit from any reduction in interest rates, particularly in the U.S. These recent developments provide insight into the investment landscape and the strategic maneuvers of major players like Blackstone. As Blackstone (NYSE:BX) secures its significant investment in AirTrunk, marking a pivotal expansion into the Asia Pacific digital infrastructure, the company's financial health and market position offer valuable insights for investors. Blackstone's market capitalization stands robust at $168.72 billion, reflecting investor confidence and the scale of its operations. Despite a high Price/Earnings (P/E) ratio of 49.97, which suggests a premium on current earnings, the company's P/E is expected to adjust to 52.28 in the last twelve months as of Q2 2024, indicating a continued investor willingness to bet on future growth. Moreover, the company's PEG ratio, which measures the P/E ratio relative to earnings growth, is at a moderate 0.78. This figure suggests that Blackstone's earnings growth is being factored into its stock price at a reasonable rate, aligning with the InvestingPro Tip that net income is expected to grow this year. Additionally, Blackstone's Price/Book ratio is high at 24.69, which could be a signal of the market's high valuation of the company's assets and future prospects. Investors are also buoyed by Blackstone's history of dividend reliability, having maintained dividend payments for 18 consecutive years, with a current dividend yield of 2.37%. This consistency is a testament to the company's financial stability and commitment to shareholder returns, even as it ventures into new investments like AirTrunk. For investors seeking a deeper analysis of Blackstone's performance and future outlook, InvestingPro offers additional metrics and insights. Currently, there are 10 more InvestingPro Tips available on their platform, providing a comprehensive view of Blackstone's financial landscape and investment potential. To explore these insights, visit the dedicated page for Blackstone at https://www.investing.com/pro/BX.

Blackstone Makes Largest Asia Pacific Investment With AirTrunk Buyout Amid AI And Data Boom: Details - Blackstone (NYSE:BX)

Blackstone sees $1 trillion investment in U.S. data centers over the next five years, with another $1 trillion outside the U.S. Blackstone Inc. BX shares are trading slightly lower premarket Wednesday. Blackstone and CPP Investments are set to acquire AirTrunk from Macquarie Asset Management and the Public Sector Pension Investment Board for over A$24 billion. AirTrunk is one of the largest data center platforms in Asia Pacific and has over 800MW of committed capacity and land for more than 1GW of future expansion. This is Blackstone's largest Asia Pacific investment and is pending approval from the Australian Foreign Investment Review Board. Sean Klimczak, Global Head of Blackstone Infrastructure and Nadeem Meghji, Global Co-Head of Blackstone Real Estate, said, "Digital infrastructure is experiencing unprecedented demand driven by the AI revolution as well as the broader digitization of the economy." "Prior to AirTrunk, Blackstone's portfolio consisted of $55 billion of data centers including facilities under construction, along with over $70 billion in prospective pipeline development." It is expected that there will be approximately $1 trillion of capital expenditures in the U.S. over the next five years to build and facilitate new data centers, with another $1 trillion of capital expenditures outside the U.S., per the company's statement. On Monday, Blackstone affiliates reached a deal to acquire an 80% stake in the Burstone Group's Pan-European Logistics (PEL) platform, valued at €1.022 billion (R20 billion). Investors can gain exposure to the BX stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO and Invesco Global Listed Private Equity ETF PSP. Price Action: BX shares are down 0.54% at $137.45 premarket at the last check Wednesday. Image via Shutterstock Read Next: Blackstone Sells $964M Apartment Portfolio To Equity Residential Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs