Equinix to spend $51m on phase I of its IBX data centre in Milan

The company says the data centre roll out will be through the Stratus Cromwell Data Centre Fund.

Real estate investor and manager Cromwell Property Group (ASX:CMW) has entered into a strategic partnership with Stratus Data Centres, a member of the EXS Capital Group (EXS), to invest in and manage the rollout of a data centre property platform across Europe and Asia Pacific.

Stratus will be responsible for project development, leasing, design and construction, with the Asian network of EXS and Cromwell’s capital, funds management and real estate investment experience.

Cromwell will be a cornerstone investor in the SCDC Fund which is targeting an eventual gross asset value of over $1 billion.

The company will also source investment funding and subsequently provide joint fund management and asset management services upon the completion of each project.

Cromwell European Real Estate Investment Trust has entered into a Heads of Term Agreement with Stratus and Cromwell to co-invest directly into 50% stakes in the SCDC Fund’s first two data centre projects in London and Frankfurt, subject to various milestones.

The first project is a two-stage, 100 megawatt (MW) data centre serving London. The 6-acre project site is located on fibre optic routes in the east of the city, will be powered by renewable energy and negotiations.

Cromwell’s Chief Investment Officer, Rob Percy said: “The partnership is another good example of our ‘Invest to Manage’ strategy in operation.

“We are delighted to be able to partner with a specialist organisation of Stratus’ calibre to create an exciting investment opportunity that we know will be in strong demand from both leading hyperscale data centre operators and international capital partners.”

The second project is on a 34-acre strategic site serving Frankfurt. A multi-stage 300MW project, with advanced pre-leasing agreements and planning processes underway.

“We are delighted to combine our development and data centre expertise in international markets with Cromwell’s capital, funds management and real estate investment experience,” said Eric Solberg, Chairman of Stratus and EXS.

“The London and Frankfurt projects are just the beginning, with further projects identified in key gateway cities in Europe including Dublin and Milan, and in Asia, including Tokyo, Manila, Jakarta and Mumbai.

“As a specialist ‘developer of developers’ in Asian real estate, EXS is excited to bring our network of regional local partners to the SCDC Fund.”

The exponential growth of data created by social media, mobile devices, video streaming and cloud computing has driven unprecedented demand for data centres.

Nigel Clarkson, CEO of Stratus, added: “As a twenty-year plus veteran developing and converting data centes across the UK, Europe, Asia and…

Read MoreEquinix to spend $51m on phase I of its IBX data centre in Milan

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