CIM and 1547 Acquire $22M Facility in Ontario
- Jan 30, 2018
A partnership of CIM Group and fifteenfortyseven Critical Systems Realty has acquired a data center in the greater Toronto area. I.C.E. Datacenters disposed of the asset for $22 million and will leaseback part of the facility. The transaction marks fifteenfortyseven’s first foray into the Canadian market.
CIM’s newly acquired data center is located 20 miles from downtown Toronto, at 105 Clegg Road in Markham, Ont. The purpose-built facility initially served as an enterprise supercomputer site and was later redeveloped by I.C.E. into a Tier III data center. Sitting on a 3.5-acre lot, the building offers 42,000 square feet of critical IT space at a capacity of two megawatts. The transaction comes with entitlements for the addition of six more megawatts and a 60,000-square-foot expansion.
I.C.E. Datacenters received a substantial capital inflow, which will be used to grow its sister company, Metro Optic. Both companies are subsidiaries of Exelerence, with the latter offering high-speed optic fiber solutions for the enterprise, carrier and cloud markets. The leaseback executed by I.C.E. will also pave the way for future data center projects in partnership with fifteenfortyseven.
The Markham facility will be jointly marketed by I.C.E. and the new owners, the latter focusing on wholesale, while I.C.E. on retail colocation, connectivity, carrier hotels and cloud providers. Preleasing activity is also underway for the upcoming expansion.
“We are excited to have CIM Group and fifteenfortyseven as our new property owner and partner. Their presence in key U.S. markets and deep expertise in wholesale data centers, combined with our relationships and knowledge of the local Toronto and broader Canadian markets, create material synergies that will enable both companies to excel in this location and beyond,” said Michael Bucheit, CEO of I.C.E. Datacenters and Metro Optic, in a prepared statement.
James Cali, principal at Avison Young’s Data Center Advisory Practice, represented both parties in the transaction.
Image courtesy of fifteenfortyseven