LONDON (ShareCast) - (ShareCast News) - Alpha Real Trust announced on Wednesday 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.
The AIM-traded firm previously confirmed in November last year that it entered into a conditional agreement to purchase, via a special purpose vehicle, 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 the sector were "potentially capable" of being met.

It said 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," the board explained in its statement.

"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 its milestones, Alpha Real said the conditions for the site purchase had now been satisfied and it was now in the process of completing the site purchase and formalising the power commitment contract.

The payment of the outstanding site purchase price stood at €12.85m.

It said the electricity supply cost commitments would become payable in phases during the electricity upgrade period of around three years.

Associated costs relating to the construction of an electricity receptor building on the site, and associated pre-identified ground preparation works, would also be undertaken.

Those commitments would bring the company's total investment into the data centre project to €28m.

"The company's strategy is to secure a tenant pre-let and fund the balance of development costs with debt," the board said.

"Active marketing of the project to potential data centre occupiers is already underway."

The board added that the securing of planning consent and a power commitment represented a "significant step" in the advancement of its build-to-rent portfolio.

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