SLOUGH (dpa-AFX) - SEGRO Plc (SGRO.L) announced formation of joint venture with Pure Data Centres Group Limited, owned by Oaktree, to create its first fully fitted data centre, which it expects to pre-lease to a hyperscaler.
SEGRO and Pure Data Centres Group are expected to each retain a 50 per cent share in the project through to completion. No management or incentive fees are payable to either party. The gross capital investment is anticipated to be approximately 1 billion pounds and is projected to deliver an unlevered net yield on cost of 9 to 10 per cent.
In addition to contributing land, SEGRO's estimated cash equity contribution to the joint venture is expected to be around 150 million pounds over the total construction period. The remaining construction costs will be financed by non-recourse bank financing, prior to the commencement of the construction.
The 50:50 joint venture, SEGRO Pure Premier Park Data Centre Limited, has been created with the intent to develop and deliver a fully fitted data centre in Park Royal, West London. It brings together a 10-acre super-prime industrial site owned by SEGRO and 70MVA of power secured by Pure Data Centres Group.
The joint venture will be SEGRO's first fully fitted data centre project, building on experience of delivering powered shells to major data centre operators for over 20 years. The joint venture intends to develop a about 30,000 sq m fully fitted, three-storey, data centre on the edge of SEGRO Park Premier Road, West London.
The clearance of the site will begin, planning will be submitted and marketing of the data centre capacity will commence now that the joint venture has been agreed. It is anticipated that the construction of the shell will commence in 2026 with the fully fitted space available for customer use from 2029.
SEGRO and Pure Data Centres' joint venture expects to sign a long-term (15 years or more) net lease with a global hyperscaler. Construction will start once planning has been obtained, lease commitments have been secured and financing has been arranged. The development of this project is expected to generate hundreds of jobs during its multi-year construction phase.
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