Credit: Adobe StockMarket Radar Europe: GBP 31bn UK/US Tech Prosperity Deal
The latest developments in the European real estate market this week
September 19, 2025Real Estate
In this week’s Market Radar Europe, we’re taking a look at significant investments in UK data infrastructure by US tech companies, a major real estate refinancing deal, the closing of a European infrastructure fund, and various loans for industrial, social infrastructure, and office assets.
Microsoft will invest GBP 22 billion to develop AI and cloud services, including a new supercomputer in Loughton, while Nvidia will invest GBP 11 billion to supply 120,000 GPUs for AI projects. Google is also investing GBP 5 billion, including a new data centre in Waltham Cross, and plans to create 8,250 jobs annually.
Further, BlackRock has also committed GBP 500 million to the UK data centre market, focusing on upgrading underutilised facilities. This investment, through its new venture with Gravity Edge, reflects the growing demand for AI-driven infrastructure in Europe, with BlackRock’s Europe Property Fund VI contributing an initial GBP 100 million.
ICG has closed its second European Infrastructure fund, ICG Infra II, at EUR 3.15 billion, more than doubling the size of its predecessor. The fund will focus on acquiring a diversified portfolio of sustainable mid-market infrastructure assets across energy transition, digital, and mobility sectors, with nearly 25% of the fund already deployed.
Apollo Global Management has provided a GBP 190 million loan to refinance an industrial outdoor storage (IOS) portfolio, representing the largest private credit financing in the sector. In addition, Patrizia’s Swedish social infrastructure platform secured a EUR 900 million loan, and Värde Partners financed Frankfurt offices with a EUR 250 million loan.
Meanwhile, Castleforge LLP and Conversant Capital LLC have formed a partnership to invest GBP 150 million in Central London office assets. Their strategy focuses on acquiring prime, sustainable spaces in response to the imbalance between supply and demand in the office market, with projects like 75 London Wall already in the pipeline.
Look out for a new edition of the Market Radar Europe next week!
US pledges major UK data centre investments
The UK and US have launched a GBP 31 billion ‘Tech Prosperity Deal’, marking a significant strengthening of economic ties, with major US tech firms, including Microsoft, Nvidia, and Google, committing to substantial investments in the UK’s data infrastructure.Microsoft will invest GBP 22 billion to develop AI and cloud services, including a new supercomputer in Loughton, while Nvidia will invest GBP 11 billion to supply 120,000 GPUs for AI projects. Google is also investing GBP 5 billion, including a new data centre in Waltham Cross, and plans to create 8,250 jobs annually.
Further, BlackRock has also committed GBP 500 million to the UK data centre market, focusing on upgrading underutilised facilities. This investment, through its new venture with Gravity Edge, reflects the growing demand for AI-driven infrastructure in Europe, with BlackRock’s Europe Property Fund VI contributing an initial GBP 100 million.
Market Moves
Brookfield has refinanced two major UK retail outlet centres, Cheshire Oaks and Swindon Designer Outlet, with a GBP 450 million loan, marking its largest European property deal. The assets, owned by LaSalle Investment Management and managed by McArthurGlen, are among the top-performing outlets in the UK.ICG has closed its second European Infrastructure fund, ICG Infra II, at EUR 3.15 billion, more than doubling the size of its predecessor. The fund will focus on acquiring a diversified portfolio of sustainable mid-market infrastructure assets across energy transition, digital, and mobility sectors, with nearly 25% of the fund already deployed.
Apollo Global Management has provided a GBP 190 million loan to refinance an industrial outdoor storage (IOS) portfolio, representing the largest private credit financing in the sector. In addition, Patrizia’s Swedish social infrastructure platform secured a EUR 900 million loan, and Värde Partners financed Frankfurt offices with a EUR 250 million loan.
Meanwhile, Castleforge LLP and Conversant Capital LLC have formed a partnership to invest GBP 150 million in Central London office assets. Their strategy focuses on acquiring prime, sustainable spaces in response to the imbalance between supply and demand in the office market, with projects like 75 London Wall already in the pipeline.
Look out for a new edition of the Market Radar Europe next week!