Alpha Real Trust sells Frankfurt data site – Alpha Real Trust has announced that it has entered into a binding contract for the sale of its data centre site in Frankfurt for a cash consideration of EUR44.8 million. Completion of the sale is subject to certain agreed conditions being satisfied, including customary German local authority land transfer requirements.
Alpha Real Trust will make a further announcement on completion of the transaction.
The company says planning consent was obtained for a five-story data centre extending to 40,338 square metres and a commitment from the local utility provider to install a 35 MVA a dual feed power supply to the site.
When ARTL last reported, site enabling works had been completed. These works included the undertaking of pre-identified ground remediation works and the creation of an electricity receptor building required to receive the upgraded electricity supply connection and to create site conditions that are suitable for the construction of a data centre.
Significant profit realised?
The acquisition of the site and planning and design costs in addition to ongoing site preparation works and electricity connection costs were being funded by the company’s cash reserves. Including the cost of site acquisition and planning costs funded to date, the company’s total potential investment into the data centre project was estimated to be up to €27.0 million (£24.0 million) and, as at 30 September 2018, an independent valuation was undertaken by Cushman and Wakefield valuing the site at €25.4 million (£22.6 million).
ARTL : Alpha Real Trust sells Frankfurt data site