Clifford Chance has advised data centre provider INSITE DC on the establishment of an investment platform with investment manager Alceon, aimed at acquiring and developing data centres across the Asia-Pacific region.
Partners Reuben van Werkum and Robert Tang led the team, providing advice on multiple aspects of the transaction.
“We provided regulatory and compliance advice on foreign investment review board consideration, corporate structuring, directors’ duties and employment laws,” Tang told Asia Business Law Journal.
Partner Chad Bochan and Counsel Julian Brun also advised on the transaction.
Van Werkum said that sorting out the funding structure and investment arrangements were among the most complex elements of the transaction.
“One of the most complex and commercially interesting aspects of establishing an early-stage data centre platform is negotiating the funding structure and investment arrangements,” he told ABLJ.
“At this stage, there is an inherent tension between the founders’ objectives to secure fully committed capital to develop a credible platform, and incoming financial partners wanting to build in protections to manage any downside risk before key dependencies – such as development approvals and customer contracts – are secured.
“This creates a classic ‘chicken-and-egg’ dynamic; founders and customers want to see a well- funded, viable investment platform, while investors are reluctant to scale up the deployment of capital until approvals are obtained and customers are secured.”
Arnold Bloch Leibler advised Alceon on all corporate and commercial aspects, with the team led by corporate and M&A partner Jeremy Leibler and senior associate Ari Bendet.
Banking and finance partner Nathan Briner and senior associate Luise Squire provided financing advice, while property-related matters were handled by partner Tyrone McCarthy and senior associate Tamsen Kempster.
Alceon’s investment in INSITE DC is part of the launch of its new DC Catalyst Fund and provides INSITE DC with a scalable source of capital to support its data centre development plans.
