Stoneweg Europe Business Trust, a part of Stoneweg Europe Stapled Trust (SERT), has made a EUR50 million ($74.4 million) investment in the Stoneweg Icona data-centre fund, SERT announced on June 24.
The data centre fund’s portfolio comprises interests in four early-stage data centre development sites in Ireland, Spain, Italy and Denmark spanning 225 hectares in total. The sites have a secured and/or reserved 1116MW of power with “very good visibility” for an additional 563MW, SERT adds.
The power capacity means the portfolio would command a share of over 14% of the current European operational power capacity. The portfolio would also be the largest data centre operator in the region.
The sites are currently going through development approvals and are in the various stages of securing pre-leases with major tenant-customers. Several critical milestones have already been cleared, notes SERT.
According to the trust, the portfolio’s estimated gross development value over the next 15 years is EUR29.5 billion based on current market values for 100% of the interest in all four projects.
As there will be other investors in the fund, SERT’s stake is expected to range from 4% to 8% depending on the final quantum.
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“We are pleased to announce this landmark investment: SERT is well positioned alongside our sponsor in a unique and high-quality development fund at the forefront of Europe’s rapidly expanding data centre market,” says Simon Garing, CEO of the managers.
“We will remain actively engaged in growing SERT’s investment alongside the fund’s promising development pipeline, aiming to maximise returns from the projected EUR29.5 billion gross development value of the four assets,” he adds.
Garing also notes that the investment should be seen as a “value-add, adjacent strategy” that enhances the trust’s overall growth. “Importantly, exposure is ring-fenced to the fund investment itself, with no recourse to SERT’s broader balance sheet – ensuring a measured risk profile aligned with our long-term strategy.”
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The investment is also expected to have “minimal impact” on SERT’s distribution per stapled security (DPS), says Garing.
“I am pleased that we are able to collaborate on such [a] strategic opportunity as our first transaction since we became the sponsor of Stoneweg Europe Stapled Trust at the end of 2024,” says Max-Herve George, chairman and co-CEO of SWI Group.
“Our [data centre fund] platform drives the development of data centres in Europe’s most strategic locations - powering the future of artificial intelligence and cloud computing with flexible capital and deep local expertise,” he adds.
Units in SERT closed 1 cent lower or 0.44% down at $2.25 on June 24. Units in SERT’s EUR-denominated counter closed flat at EUR1.52.
