Azrieli mulls data centers unit IPO at $3.2b valuation - report

Danna Azrieli credit: Arik Sultan
Danna Azrieli credit: Arik Sultan

Azrieli, which bought Norwegian company Green Mountain in 2021 for a fraction of that amount, is considering an IPO, "Bloomberg" reports.

Israeli income-producing real estate company Azrieli Group (TASE: AZRG) is examining options for its data centers arm Green Mountain, including a possible IPO, "Bloomberg" reports according to people familiar with the matter. Following the report, Azrieli's share price rose 5% on the Tel Aviv Stock Exchange.

Azrieli Group, controlled by chairman Danna Azrieli, acquired Norwegian company Green Mountain in 2021 for NIS 2.8 billion. "Bloomberg" reports that Azrieli has already held early discussions with potential advisers about possibilities for the business. It could also seek to raise a private round of funding for the Norwegian-based business, the sources told "Bloomberg."

Another option, "Bloomberg" said would be an IPO, possibly on the London Stock Exchange at a company valuation of $3.2 billion (£2.5 billion). If Azrieli were able to achieve such a valuation, it would have increased the company's valuation from NIS 2.8 billion to NIS 12.2 billion within just three years. If Azrieli goes for an IPO, it would likely take place later this year or next year, the sources told "Bloomberg."

Last year Azrieli reported that it plans building a data center in Norway for Chinese company TikTok for €750 million. The campus will include several buildings supplying the company with 90 megawatts of electricity. Azrieli expects annual NOI of $79 million for the project. "Bloomberg" reports that Green Mountain operates a data center in London and is planning to build one in Germany.

Last year Azrieli sold its 32% stake in Canadian data centers company Compass at a valuation of $5.7 billion, and recorded a NIS 1.3 billion capital gain - NIS 900 million after tax.

No response from Azrieli has yet been forthcoming.

Published by Globes, Israel business news - - on January 18, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Danna Azrieli credit: Arik Sultan
Danna Azrieli credit: Arik Sultan
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