Volt Bonds
Uncovering a Hidden Data Center Opportunity
In Q2 2023, CIM saw an opportunity to make a $73 million investment in investment grade rated CMBS bonds backed by a data center portfolio called Volt.
At the time of purchase, the four data centers securing the bonds derived approximately 65% of rental income from leases with “hyperscale” companies — large technology-driven enterprises specializing in public and hybrid cloud services and related industries.
Our CIM Real Estate Debt Solutions team identified the investment as a strong potential opportunity, believing the bonds were mispriced on a relative basis at new issuance. For greater assurance, they reached out to our in-house Infrastructure Investments team.
Drawing on their experience with data center assets, the Infrastructure Investments team was able to quickly underwrite and validate the underlying the data centers prior to the investment.
In June 2024, the Volt bonds were redeemed following a refinance ahead of schedule. CIM’s vertically integrated team and understanding of the data center asset class were key factors in the successful transaction.
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Case Studies
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Example case studies are shown to illustrate capabilities within the strategy. There is no guarantee that any strategy objectives will be met or that past results will be replicated.
CIM 4095047