Cromwell European REIT Enters Into Agreement To Invest In European Data Centres
Cromwell EREIT Management Pte. Ltd., the manager (the “Manager”) of Cromwell European Real Estate Investment Trust (“Cromwell European REIT” or “CEREIT”), today announced that CEREIT has entered into a Heads of Term Agreement with its sponsor Cromwell Property Group (“Cromwell”) and Stratus Data Centres (“Stratus”), a member of the EXS Capital Group (“EXS”), to co-invest directly into 50% stakes in two data centre projects in London and Frankfurt, subject to various milestones.
- The first project is a two-stage, 100 megawatt data centre serving London; negotiations with potential tenant operators are well advanced and construction is expected to be completed in 2021
- The second is a multi-stage 300 megawatt project on a 34-acre strategic site serving Frankfurt; advanced pre-leasing agreements and planning processes are underway
- The two sites are the first data centre projects in the Stratus Cromwell Data Centre Fund (“SCDC Fund”)
- CEREIT’s sponsor Cromwell has simultaneously entered into a strategic partnership with Stratus to invest in and manage the rollout of a data centre property platform across Europe and Asia Pacific through the new SCDC Funds
The Manager’s Chief Executive Officer, Mr. Simon Garing, commented: “We have identified a sector with significant investment opportunity in Europe, where we believe there will be continued demand for data centre projects. Data centres are a natural fit with our existing investment strategy and portfolio composition and we expect to realise attractive risk-adjusted returns for CEREIT unitholders from the partnership. The platform will also allow us to extract additional value through a number of potential future data centre opportunities in strategic locations within CEREIT’s existing 1.4 million sqm portfolio.”
CEREIT 1Q 2020
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