Cloud Capital and Realty Income have launched a Core Joint Venture Strategy seeded with over $6 billion to invest in sta

Cloud Capital, a leading global data center investment management firm, announced today the launch of its Core Joint Venture Strategy in partnership with Realty Income and a Global Institutional Investor. The programmatic joint venture is seeded with three initial investments valued at over $6 billion and focuses on stabilized hyperscale assets leased to investment-grade tenants on long duration, triple-net leases in the United States, with intention to expand into Europe.

The new dedicated strategy leverages Cloud Capital's vertically integrated platform to deliver scalable core exposure in tier one, high barriers to entry geographies. Cloud Capital brings its longstanding tenant relationships, attractive proprietary pipeline, and deep sector expertise to the venture. Cloud Capital's Founder and CEO, Hossein Fateh, stated: "Drawing on more than 30 years of investing in and leasing some of the world's largest data centers through multiple cycles, I have seen firsthand the importance of acquiring and developing high-quality assets and long-term tenant relationships. We believe this positions our partners to benefit from exposure to highly strategic data centers underpinned by accelerating demand for cloud and AI applications."

Shariar Mohajer, Cloud Capital's President and Chief Investment Officer, added: "As the digital infrastructure market continues to mature, specialized sector expertise and proprietary sourcing are increasingly critical. Our dedicated platform, longstanding industry relationships and vertically integrated capabilities enable us to access differentiated investment opportunities and build portfolios with resilient cash flow, attractive long-term fundamentals, and long-term value creation for our partners."

The Core JV builds on Cloud Capital's established track record investing across the data center lifecycle since 2020, during which it has acquired a portfolio of 30 data center assets worldwide valued at over $12 billion. It expands on the success of its existing vehicles, including Cloud Capital's Core-Plus Open-End Strategy, Opportunistic Closed-End Strategy, and newly launched Value-Add Closed-End Strategy.

Sumit Roy, President and Chief Executive Officer of Realty Income, stated: "Today's announcement affirms the strength of our business model and its ability to translate across sectors, including digital infrastructure. We are pleased to advance a scaled digital infrastructure platform while deepening our programmatic relationship with Cloud Capital, which is vertically integrated with CloudHQ, a best-in-class developer and operator. The combination of high-quality data center assets leased to investment-grade tenants, long-duration triple-net leases, and an attractive return profile reflects our disciplined approach to capital allocation and value creation." Realty Income, an S&P 500 company founded in 1969, has a portfolio of over 15,500 properties across all 50 U.S. states, the U.K., and eight other European countries, and has declared 672 consecutive monthly dividends while maintaining membership in the S&P 500 Dividend Aristocrats index for 31 consecutive years of dividend increases.

Goldman Sachs & Co. LLC and Jones Day served as financial advisor and legal counsel, respectively, to Cloud Capital. Moelis & Company LLC and Latham & Watkins LLP served as financial advisor and legal counsel, respectively, to Realty Income.