Sabey Data Centers Gets $150 Million Investment from Manulife

Developer Sabey Data Centers has raised $150 million from new strategic partner Manulife Investment Management to help its expand Sabey’s growing operations. Seattle -based Sabey, which is one of the largest privately-held multi-tenant data center operators in the U.S., said the funds will be used to “capitalize on robust tenant demand for data center space by growing (our) portfolio.”

Sabey Data Centers is a joint venture between Sabey Corporation and National Real Estate Advisors (NREA). The company operates more than 3 million square feet of mission-critical space, making it one of the largest privately-held multi-tenant data center operators in the United States, with campuses in Northern Virginia (Ashburn), Manhattan and three sites across the Pacific Northwest.

The Sabey funding is yet another example of the influx of fresh investment into the data center sector, which has become a favored destination from large global financial firms  as the growth of the digital economy attracts investment dollars.

Funding Will Back Next Phase of Growth

Sabey and NREA welcomed the addition of Manulife Investment, which will have its minority equity position funded from the John Hancock Life Insurance Company (U.S.A.) balance sheet as well as third-party managed accounts. Manulife Investment is based in Toronto and is the global wealth and asset management segment of Manulife Financial Corporation.

“Demand for digital capacity will continue to increase, and Sabey Data Center Properties is dedicated to meeting that demand,”  said Dave Sabey, Chairman & President of Sabey Corporation. “The Sabey partnership with National Real Estate Advisors has been key to our success in expanding our nationwide data center footprint and we are pleased to welcome Manulife Investment Management as a new strategic partner.”

Sabey is in expansion mode, adding capacity across its footprint. The company recently lined up $800 million using securitized notes to arrange low-cost capital for continued expansion of the company’s U.S. data center campuses.

“The past year saw some major shifts in the commercial real estate market, but the data center market remained strong,” said Jeffrey Kanne, President and CEO of National Real Estate Advisors. “We look forward to investing this capital which underscores our commitment to the data center market and its continued growth.”