Merlin Properties Raising Capital to Expand Data Center Business

(Bloomberg) -- Merlin Properties Socimi said it will hold a share sale to raise capital to fund the expansion of its data center business.

The Spanish real estate company will issue about 94 million new shares through an accelerated bookbuilding, representing about 20% of its share capital, it said in a regulatory filing Tuesday. The company has a market capitalization of €4.8 billion ($5.2 billion).

Shareholders Banco Santander and Nortia Capital, as well as company officials including Chief Executive Officer Ismael Clemente, will participate in the offering. 

Merlin currently has data centers in cities including Madrid, Bilbao, and Barcelona, according to its website. 

Goldman Sachs and Morgan Stanley are acting as joint global coordinators for the capital increase.