The strategy pairs Realty Income and a Global Institutional Investor to target stabilized U.S. hyperscale assets on long-duration triple-net leases, with plans to expand into Europe.
Cloud Capital has launched its Core Joint Venture Strategy with Realty Income and a Global Institutional Investor, starting with three investments valued at more than $6 billion. The vehicle targets stabilized hyperscale data center assets leased to investment-grade tenants under long-duration triple-net leases (tenant pays property costs) in the United States, with an intention to expand into Europe. The firm said the strategy is designed to provide scalable core exposure in tier one markets with high barriers to entry, drawing on Cloud Capital’s tenant relationships, proprietary pipeline and vertically integrated operating model. Founder & CEO Hossein Fateh said accelerating demand for cloud and AI applications supports the appeal of strategic data centers, while President and Chief Investment Officer Shariar Mohajer said specialized expertise and proprietary sourcing are becoming more important as digital infrastructure matures. Realty Income President and Chief Executive Officer Sumit Roy said the venture extends the companies’ programmatic relationship and highlighted Cloud Capital’s connection with CloudHQ. Cloud Capital said the new vehicle builds on its existing Core-Plus Open-End Strategy, Opportunistic Closed-End Strategy and newly launched Value-Add Closed-End Strategy. Since 2020, the firm said it has acquired 30 data center assets worldwide valued at over $12 billion.