PIMCO’s European data centre fund had secured approximately €800m as of February this year, real estate investment consultant NEPC disclosed in a board meeting document for the Ventura County Employees’ Retirement Association (VCERA).
According to the document, VCERA intends to approve and issue a $30m (€26.7m) commitment this month to PIMCO European Data Center Opportunity Fund, a fund seeking to raise €1bn.
As part of its strategy execution, PIMCO created Apto, a European data centre company formed to develop and operate the global investment manager’s European data centre assets.
PIMCO’s current development site pipeline is around €2.5bn, as detailed in the board meeting document.
One of the sites, located in Milan, is expected to have an all-in cost of €1.26bn, an expected equity of €296m and a capacity of 300MW.
According to VCERA, the PIMCO fund targets net internal rate of return of between 18% and 20% and a 2.0x total paid-in capital return.
The fund is expected to only undertake development activities after a lease agreement is signed with rent based on cost, ensuring developments proceed only upon securing leases to mitigate risk, with typical lease terms ranging from 10 to 25 years.
PIMCO declined a request for comment.
To read the latest IPE Real Assets magazine click here.
