Merlin Properties has raised €767 million through a capital increase equivalent to 10% of its share capital, as the company accelerates investment into its data centre platform, now positioned as its primary growth driver.
The REIT issued 56.3 million new shares in a transaction completed without discount to the prevailing market price, signalling strong investor demand and confidence in the company’s strategy. The capital increase was backed by key shareholders, including Banco Santander and Nortia Capital, the latter controlled by Manuel Lao, which subscribed for shares pro rata to maintain their respective stakes of 24.71% and 8.50%.
Santander invested approximately €189 million in the transaction, while Nortia contributed €90.4 million, underlining continued support from core investors as Merlin pivots its business model towards digital infrastructure.
The proceeds will be used to fund phase III of the company’s data centre development plan, which targets a total capacity of 412 megawatts. The expansion forms part of a broader €4.47 billion investment programme over the next six years, as outlined during the company’s recent capital markets update.
Including earlier phases—€614 million allocated to phase I and €2.76 billion to phase II—Merlin’s total planned investment in data centres is expected to reach approximately €7.84 billion, marking a significant strategic shift from traditional office and retail assets towards infrastructure-linked real estate.
Ismael Clemente, CEO of Merlin Properties, has described data centres as “the main growth vector” for the company, noting that the business will “completely transform” Merlin’s profile in the coming years. The group intends to fund this expansion through a combination of equity and debt, leveraging its investment-grade rating and EMTN programme, while pursuing further capital increases over time to minimise shareholder dilution and align funding with share price performance.
