The “ETS Fund” acquires and operates data centers, life sciences labs, and “Always On” technical operations and research facilities
August 10, 2022 – GI Partners, a leading private alternatives investment firm, has announced the acquisition of five “Always On” properties representing 860,000 square feet and located in the nation’s leading market for defense technology employment, on behalf of its Essential Tech+Science Fund (GI Partners ETS Fund LP, the “ETS Fund”). The properties, all of which are located in high density Northern Virginia markets, are leased to many of the largest defense and government contracting companies in the U.S.
GI Partners has historically acquired similar “Always On” assets—those that house mission critical technology operations and non-biological R&D — in its core real estate funds. This investment represents the first “Always On” acquisition in its core plus ETS Fund.
The properties include divisional headquarters locations, and host operations and R&D for intelligence, cybersecurity, satellite, cloud, communication and other related purposes. The highly secure buildings feature a range of infrastructure improvements, including significant SCIF (Sensitive Compartmented Information Facility) buildouts, dark fiber, data centers, satellite and antennae installations, and are supported by redundant power and cooling.
John Sheputis, Managing Director of GI Partners and Head of the ETS Fund, said, “We are proud to own these mission critical assets. They are the first “Always On” investments for the ETS Fund. These properties are located near the center of one of the biggest technical operations markets and communications clusters in North America, and are leased to top government contractors who use these buildings and infrastructure to provide mission critical technology services and research. The continual operation of these properties during the recent pandemic demonstrates the physical value of this real estate to the U.S.’s national intelligence and defense agencies.”
Patrick Lawler, Principal of GI Partners, said, “These properties include significant structural improvements which make the buildings mission critical to the tenancy. Given the regulatory approvals required and cost inflation in recent months for high-quality fit outs, we believe our acquisition basis represents an attractive discount to replacement cost. The properties feature existing dark fiber and SCIF improvements that are difficult to replicate. Further, the locations within or adjacent to the largest and most important data center cluster in the country also provides important long-term value creation opportunities.”
Since launching in 2021, the ETS Fund has acquired thirteen properties and is actively investing in a diverse portfolio of data centers, life sciences properties, and “Always On” facilities across key markets in the United States.
About GI Partners
Founded in 2001, GI Partners is a private investment firm with over 130 employees and offices in San Francisco, New York, Chicago, Greenwich, Scottsdale, and Dallas. The firm has assets under management totaling $35 billion and invests on behalf of leading institutional investors around the world through its private equity, real estate, and data infrastructure strategies. The private equity team invests primarily in companies in the healthcare, IT infrastructure, services, and software sectors. The real estate team focuses primarily on technology and life sciences properties as well as other specialized types of real estate. The data infrastructure team invests primarily in hard asset infrastructure businesses underpinning the digital economy. For more information, please visit www.gipartners.com.