Type Data Centre
Asset Backed Yes
Estimated loan to value 17%
Capital is at risk and returns are not guaranteed. This is a 23 month bond and is not readily realisable.
This asset-backed Bond is an opportunity to lend directly to GTP3 LLP, the owner of a data centre in Birmingham which has a planned capacity of 3 Mega Volt Amp (MVA).
The Bond will offer investors a chance to earn up to 5% p.a. interest over a period of up to two years.
A data centre is a building that houses technology systems that are used to store data, transferred to and from the centre via communications cables. Almost all businesses today are producing increasing amounts of data and demand for storage is increasing. Data centres have very high requirements for security and power which makes location very important.
GTP3 LLP has invested c.£20 million in the site as at 31 March 2017. The first of two data halls has been constructed and the infrastructure to support half of the first hall is in operation. This space is already contracted out to an established IT services company and GTP3 LLP is now seeking further customers for the remaining 75%.
In October 2016, Cushman & Wakefield, an industry-leading specialist adviser to the commercial property sector, valued the data centre at £24.6 million. A copy of this valuation report can be found by clicking the following link: VIEW VALUATION REPORT. As the £2.8m Bond has a potential further raise of £1.4 million, which may be issued at the company’s discretion, the maximum estimated loan-to-value ratio of the Bond is approximately 17%.
GTP3 LLP is the UK limited liability partnership that owns a data centre site in Birmingham. It is owned by a combination of professional developers, funds managed by Downing and Pure Data Centres Group Ltd (“PDCG”).
PDCG is the operational manager of the data centre and is led by founder Martin Lynch. Lynch has significant sector experience in the UK and abroad, and has assembled a senior management team whose expertise cover data centre design, construction, operation, financing and ancillary services. PDCG is present in the UK, the Middle East and Africa.
Professional property developer Peter Beckwith has invested in GTP3 LLP alongside Downing funds. Beckwith has worked in the real estate sector for over 40 years developing sites and building operational businesses in the UK and abroad. We believe this wealth of experience is invaluable in his capacity as a partner of GTP3 LLP.