Last checked at 
25 Oct 2017 07:00
25 October 2017
ALPHA REAL TRUST LIMITED ("ALPHA REAL TRUST" OR THE "COMPANY")
Planning consent and power supply commitment secured for data centre
Alpha Real Trust announces that it has successfully secured detailed planning consent for a 40,338 square metre data centre building at its data centre site, together with a commitment from the local utility provider to connect a 35 MVA dual feed power supply to the site.
As announced in November 2016, Alpha Real Trust entered into a conditional agreement to purchase, via a SPV, an industrial site in Frankfurt which it identified as being suitable for the development of a data centre, where the high barriers of entry to this sector were potentially capable of being met. The agreement to purchase the site was subject to securing planning consent for a data centre with a minimum gross external area of 23,000 square metres and a specified minimum electrical power supply with a dual feed for the proposed development.
During the intervening period Alpha Real Trust undertook a detailed planning exercise, creating detailed designs for a data centre building and its mechanical and electrical systems. Following a collaborative approach with the local authorities, detailed planning consent was approved for a five-story data centre extending to 40,338 square metres. Further, the local utility provider has offered to supply a dual feed power supply on a phased basis over the coming three years, synchronised with local electricity substation and cable route upgrades.
Following the achievement of the above milestones the conditions precedent for the site purchase have now been satisfied. The Company is hence now in the process of completing the site purchase and formalising the power commitment contract. The payment of the outstanding site purchase price is €12.85 million. The electricity supply cost commitments will become payable in phases during the electricity upgrade period of approximately three years. Associated costs relating to the construction of an electricity receptor building on the site and associated pre-identified ground preparation works will also be undertaken. These commitments will bring the Company's total investment into the data centre project to €28 million.
The Company's strategy is to secure a tenant pre-let and fund the balance of development costs with debt. Active marketing of the project to potential data centre occupiers is already underway.
The securing of planning consent and a power commitment represents a significant step in the advancement of the Company's build-to-rent portfolio.
For further information please contact:
Alpha Real Trust Limited
David Jeffreys, Chairman, Alpha Real Trust +44 (0) 1481 231 100
Brad Bauman, Joint Fund Manager, Alpha Real Trust +44 (0) 20 7391 4700
Panmure Gordon, Broker to the Company
Richard Gray / Andrew Potts +44 (0) 20 7886 2500
Registered office: Old Bank Chambers, La Grande Rue, St Martin's, Guernsey, GY4 6RT
Alpha Real Trust Limited is advised by Alpha Real Capital LLP, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom.