Pannone has advised Lunar Digital, a leading data centre operator, on the sale of its Manchester data centre to Arcus Infrastructure Partners, a specialist infrastructure fund manager.

Lunar, which has three fully-owned and managed facilities in the North West, sold their Reynolds House data centre to Arcus for an undisclosed sum. Arcus invests in and manages European infrastructure assets, providing long-term capital for sustainable development.

Pannone acted as legal adviser to Lunar and its shareholders, having advised on the original purchase of the data centre in 2024. This is the third major disposal that Pannone has acted on for the founders of Lunar, Rob Garbutt and Paddy Doyle, dating back to 2011.

The Pannone team was led by Corporate Partner, Tom Hall, with support from Sophie Adshead, Catherine Ossai, Bryn Burton and Amy Chandler.

The sale marks a significant milestone for Lunar Digital, which only launched its first data centre, Lunar 1, in January 2024.

Tom Hall commented: “The sale of the Reynolds House data centre to a highly acquisitive buyer speaks volumes not only about the potential and fast-growth nature of the business, but also about the strength and depth of the North West data centre market.

“In recent years, the regional market has grown exponentially driven by the ambition and entrepreneurial spirit of players such as Lunar. Their focus on growth has been driven by Rob, Paddy, Charlie and Mark, who have a fantastic reputation in building and selling high performing businesses. We’re delighted to be playing a small part in that continued story, especially given our firm’s long-standing relationship with the founders.”

Robin Garbutt, CEO at Lunar Digital, said: “Building the Reynolds House Manchester data centre into an established part of the city’s connectivity ecosystem has been a significant achievement for our team. We are proud of the business we have developed and pleased to see Arcus and Volta support its next phase of growth. This transaction brings new investment and opportunities for the data centre, its customers and its people, while we retain the Lunar Digital brand.”

Alantra acted as sole financial advisor to Lunar. Arcus were advised by Ashurst Perkins Coie (legal).