Technical Due Diligence
Our client is an established fund management organisation operating in the field of technology and real estate that is keen to extend the success seen it has seen in the US to Europe. To initiate this effort the client had identified a possible data centre for purchase in Italy for investment consideration.
VIPA Digital was engaged to provide a comprehensive technical review of the target asset, its current operating model and customer lease obligations aiming to advise the client to allow them to determine whether to invest.
The aim was not to judge but to provide a clear indication of the strengths, weaknesses, opportunities, and threats when considering investing in a data centre of this type, size, quality, and location.
VIPA Digital has performed numerous assessments of this nature and has procedures and templates documented to streamline the data collection process. These maximised the value of a site tour which allowed documentation (obtained ahead of time) to be validated and provided the opportunity to question operations staff as to their operating model, tools, and processes.
Following the tour, several end-customer leases were reviewed in detail and the CAPEX and OPEX costs were analysed.
The report made clear and concise recommendations to our client. Avoiding technical jargon wherever possible to allow financial and risk-based decisions to be made effectively by our client. Where recommendations were made these were supported with references to the source documentation.
The VIPA Digital team was on-call to answer client questions throughout the engagement and delivered an executive summary presentation to support our written report. Delivering beyond expectations allowed the client to fully understand the report’s conclusions.
It is now for our client to decide whether to invest. If it does then VIPA Digital will be on hand to aid post-acquisition to develop the asset and its operation to meet the needs of its new owner. And then perhaps investment in other data centre assets within Europe or further afield will be next?