Cromwell European REIT (CEREIT) has entered into agreements to co-invest in two data centre projects in London and Frankfurt.
The agreements have been entered into with its sponsor, Australia-listed Cromwell Property Group, and Stratus Data Centres.
The first project is a two-stage, 100 megawatt data centre serving London.
This 6-acre project site has gathered the attention of potential tenant operators, and construction is expected to be completed in 2021, said the REIT.
Meanwhile, the second, larger project is a 300 megawatt data centre serving Frankfurt.
Advanced pre-leasing agreements and planning processes for the property are underway, and it will be one of the largest data centre campuses in Germany and Western Europe once completed, the REIT added.
“We have identified a sector with significant investment opportunity in Europe, where we believe there will be continued demand for data centre projects”, said Simon Garing, CEO of the REIT’s manager.
“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”, he said.
Separately, Cromwell European REIT’s sponsor has entered into a partnership with Stratus to invest in, and manage the rollout of a data centre property platform across Europe and Asia Pacific through the new Stratus Cromwell Data Centre Fund (SCDC Fund).
This partnership will combine Stratus’ data centre sector specialisation and EXS’ Asian network with 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 USD1 billion.
Cromwell European REIT was last done on the Singapore Exchange at EUR0.43, which is a discount of about 15% to book value according to data collected in the Singapore REITs table.