CX5 Development Agreement
CSF GROUP PLC
(“CSF” or the “Group”)
CX5 DEVELOPMENT AGREEMENT
Following the commencement of earthworks, the Directors of CSF are now pleased to advise that the Group has entered into the final agreement to develop its new CX5 data centre, as envisaged in its March 2010 Admission Document.
The Group has entered into a joint-venture agreement with Permodalan Nasional Berhad (“PNB”) and Integrated DC Builders Sdn Bhd (“IDCB”) for the development of CX5, which, when completed, is expected to be Malaysia’s largest independent data centre with 201,000 net sq. ft. of data centre space. The Group has also entered into an agreement with PNB to lease and operate the completed facility. This secures substantial consulting and development revenues for the Group over the next three financial years.
The key terms of the joint-venture agreement are set out below:
- PNB as the land owner shall make available ten acres of the land for the construction of CX5 Data Centre.
- IDCB as the project owner shall execute the design, construction, completion and management of CX5
- The Group shall be the project manager to assist in the design, construction, completion and management of CX5
- CX5 shall comprise of three blocks, each of five storeys, with net data centre space as follows:-
- Block A - 69,336 sq ft
- Block B - 69,336 sq ft
- Block C - 70,584 sq ft
- CX5 shall be constructed, together with the fit out of critical power infrastructure and associated cooling, in 3 phases:-
- Phase 1 - construction of Block A, Block B and Block C together with the fit out of Block A
- Phase 2 - fit out of Block B
- Phase 3 - fit out of Block C
- The Group shall lease Blocks A, B and C respectively from PNB for a period of 10 years with an option to extend for a further 15 years. The lease of each block will commence on the same dates as the completion dates of the sale of each block by IDCB to PNB.
- The Group has the exclusive right to secure tenants for the data centre space in Blocks A, B and C, subject to the terms of an earlier agreement entered into between the Group and IDCB in January 2010 whereby IDCB has undertaken to procure tenants for Block A.
Upon completion of all of these stages the Group will operate the entire CX5 facility and own it under a lease from PNB in the same manner as it currently owns and operates CX1 and CX2.
For further information:
+603 8318 1313
Adrian Yong, Chief Executive
Leander (Financial PR)
+44 (0)7795 0168 157
Cenkos Securities plc (Nominated Adviser and Broker)
+44 (0)20 7397 8900
Ian Soanes or Elizabeth Bowman
Notes to Editors:
CSF Group (AIM: CSFG) is a leading provider of data centre facilities and services in South East Asia and the largest provider of data centre services in Malaysia with 35% market share. The Group was established in 1991 and has been involved in the build & fit out of over 200 data centres, including the largest data centre in South East Asia, CX2, at 157,000 net sq ft. Although its primary focus is the design, development and operation of data centres it also develops data centres on behalf of third party customers. Its customer base comprises global blue chip IT, Telco and Industrial companies to whom it offers a range of highly flexible, scalable services.
The Group listed on AIM on 22 March 2010, raising £28m at 55 pence per share which it is using to develop CX5, a 201,000 net sq.ft data centre in Cyberjaya, as well as expand its operations into Vietnam, Thailand and other underdeveloped South East Asian territories.