(Asx: GDC) | Global Data Center Group.

Oct 6, 2021

Sentiment: Bullish

Type of Trade: High Growth

Industry: Data Centre - Data Storage

Sector: Information Technology

The Global Data Centre Group provides the opportunity to access a portfolio of investments in data centres that it believes should benefit from the strong growth in data driven by cloud, internet and IOT. (The Internet of Things, or IoT, refers to the billions of physical devices around the world that are now connected to the internet, all collecting and sharing data). It invests directly into data centre business and assets typically  by taking equity positions of between A$20-50M.

The underlying portfolio of data centres within the Group includes data centres in Asia Pacific that are exposed to Hyperscale cloud growth and regional/edge data centres in Europe and the Pacific.

The objective of the fund is to deliver an internal rate return of 10% plus per annum through disciplined investment in a broad range of digital infrastructure opportunities.

✅ Significant capital deployment with $82.3 million, including acquisition of ETIX Everywhere and follow-on investment in Gateway Network Connections (GNC) and the MIRA consortium stake in Airtrunk.

✅ Very strong financial performance – FY21 Revenue growth up 295% (huge growth).

✅ Very strong financial performance – Operating EBITDA of $2.6m, up 521% (huge growth)

✅ Robust underlying asset performance with initiated capacity expansions of 0.6MW ETIX, a 36% increase to 2.25MW.

FY22 Forecast EBITDA ofA$3.7-$4.0m, potentially another great growth.

✅ 14 Data Centre Interest.

✅ Strong Micro environment with the digital revolution is creating a once in a lifetime investment cycle in technology infrastructure assets to support the inexorable growth of cloud, Internet of Things and a hyper connected world. In this new economy data centres are the factories of the future

✅ Company is exploring an emerging market such as South America and South East Asia in the early stage.

✅ Experienced Leadership.

In December 2020, the company has acquired the data centre operator Etix Everywhere for A$38.2m.

Company’s Timeline

September 2021, the company has successfully completed $19m capital raising in form of SPP (Share purchase Plan). A SPP eligible Shareholders with an opportunity to purchase additional fully paid ordinary shares in the Company (New Shares) at the same price offered to institutional investors under the Company’s recent placement, without brokerage or transaction costs.

Growth Strategy

GDC strategy is to continue to rapidly scale the company’s data center operating business, through strategic acquisitions, value enhancing investment or follow-in investments, to capture strong industry growth going forward.

The company Three Pillar Investment Strategy

  • Creation of Platform for Growth
  • Increasing Exposure to smart investments that meet the digital thematic
  • Achieve an efficient capital structure.

Investment Portfolio

  • ETIX Everywhere
  • Gateway Network Connections (GNC)
  • MIRA stake in Airtrunk
  • Fujitsu Perth Data Centre

Technical Analysis (Restrict to VIP members only)

Entry Details (Restrict to VIP Members only)

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