Global Technology Company
01 The Opportunity
Cushman and Wakefield was retained by a global technology company to assist in the selection of multiple sites for the construction of a number of mission critical data centers. The priorities were to acquire 20+ acre properties within specific geographies of Ontario and Quebec that would allow for, and have the proper infrastructure to support, the construction of World Class data centers within a comparatively short timeframe.
- Client requirement to remain confidential to prevent unnecessary land value inflation.
- Client required ownership of site and was hesitant to consider alternative deal structures (build to suit, land-lease of joint venture).
- Client intended to development the property using their preferred contractors which was contrary to the desires of developer or ultrahigh- net worth landowners who wanted to hold onto the land and/or build powered sells if not completed buildings.
- Specific geographies targeted consisted of:
- significantly built out suburban areas with few truly greenfield opportunities.
- small lots requiring negotiation with multiple parties to acquire the desired acreage.
- little to no “on market” properties.
- situations where availability rates were below 1.5% meaning significant competition incurred when large industrial properties became available.
- further limited availabilities due to access to power and fiber.
- large parcels of land zoned agricultural or constrained by green belt regulations or environmental issues requiring longer lead times.
02 The Solution
- Comprehensive research done in the region
- Mapped and identified ownership of all large land and industrial parcels in the area (both “on” and “off”).
- Overlaid electrical power and fiber information to further qualify potential sites.
- Contacted all land/industrial owners with characteristics to unearth off market transactions.
- Worked with multiple site owners for potential assembly of land sites.
- Worked weekly with client to create and update a short list of targeted options with multiple contingencies for each preferred site to develop and maintain negotiating leverage.
- Implemented a multistep process to progressively secure exclusivity to individual opportunities (letters of intent, confidentiality agreements, right of access agreements, agreements of purchase and sale etc.).
- Continually followed up with landowners to sustain momentum and develop leverage and sense of urgency.
03 The Results
- Cushman & Wakefield managed 10
opportunities, resulting in the completion
of 4 acquisitions, totaling 71 acres and a
transactional value of $153 million.
- Achieved below market prices.