Institutional Investment Memorandum — Memo Stage • All figures EUR millions

Velebit Data Center d.o.o.
Obrovac, Croatia

100 MW IT Load • Zadar County, Northern Dalmatia • Project Finance Structure

Facility CAPEX
1,260m
Constr. €1,200m + soft 5%
Equity IRR (Levered)
19.1%
15-yr hold + terminal exit
Contracted Revenue
140m/yr
€1.4m/MW × 100 MW, monthly
DSCR / Yield on Cost
1.67x
10.0% yield on cost

All figures are memo-stage and order-of-magnitude. A quantity surveyor / cost consultant estimate is required before investment committee use. Power treated as tenant pass-through in base case. IT/compute hardware excluded from CAPEX scope.

Investment Structure

Project Company & Capital Structure

Velebit Data Center d.o.o. is the Croatian special-purpose vehicle (SPV) that builds, owns, and operates the asset. Senior debt is non-recourse to sponsors and raised at the project level.

Project Terms
SPV
Velebit Data Center d.o.o.
Location
Obrovac, Zadar County, Croatia
Investor stake
51% controlling
Developer stake
49% (Euro Estate Strategy)
Grid operator
HOPS (Croatian TSO)
IT load
100 MW (120–130 MW gross draw)
PUE reference
1.20–1.30
Availability target
95.0%
FX reference
EUR/USD 1.08
Power is procured at EUR 132/MWh and recharged to the tenant in full (pass-through treatment), making it net-neutral to EBITDA. If treated as a project cost, EBITDA would fall ~EUR 130m/yr and the deal would not be viable on current terms.
Capital Stack
Senior Debt — 75%
€900m at 3.0% / 15yr amortizing
Equity 25%
€300m
Construction CAPEX€1,200m
Soft costs (5%)€60m
Total project cost€1,260m
Equity (25% of CAPEX)€300m
Soft costs (investor-funded)€60m
Senior debt (75% of CAPEX)€900m
Investor total contribution€360m
Capital Cost Breakdown

Facility CAPEX by Component — Indicative

Component-level cost ranges from the feasibility section. Excludes IT/compute hardware (€13–37m+/MW for AI-density deployment). All figures memo-stage.

Component EUR m Share Allocation Per MW (low–high) Scope
A. Land & site 90.0 7.1%
€0.70–1.10m Acquisition, site prep, civil, earthworks, access
B. Building shell & core 140.0 11.0%
€1.20–1.65m Structure, floorplate, roofing, white-space build-out
C. Electrical systems 470.0 37.0%
€4.20–5.20m Grid/MV, transformers, switchgear, UPS, gensets, BESS, POUs
D. Mechanical / cooling 290.0 22.8%
€2.30–3.60m Chillers, heat rejection, AHUs, liquid cooling, water treatment
E. Fire, life-safety & security 32.0 2.5%
€0.23–0.42m Detection/suppression, physical security perimeter
F. Network & low-voltage 37.0 2.9%
€0.28–0.46m Structured cabling, fibre, meet-me rooms, DCIM/BMS
G. Soft costs 60.0 4.8%
5% of CAPEX Design, engineering, owner's PM, permits, commissioning
H. Contingency 141.0 11.2%
Feasibility contingency allowance (residual to total)
Total Facility CAPEX 1,260.0 100% €12.6m/MW

Electrical systems alone represent 37% of facility CAPEX — the single largest cost driver. Long-lead procurement strategy for transformers, switchgear, and UPS is critical to schedule and budget certainty. AI-optimized IT hardware (€13–37m+/MW) is entirely excluded and is a tenant / operator cost.

Operating Economics

Stabilized Year — Income Statement & Key Returns

Base case assumes full 100 MW contracted from Year 1. Power is a tenant pass-through (net-neutral to EBITDA). Non-power O&M at 10% of revenue. Corporate tax and maintenance capex excluded.

Contracted revenue (offtake / lease) 140.0
Power (procured EUR 132/MWh — pass-through)
O&M / opex (non-power, 10% of revenue) (14.0)
EBITDA 126.0
Annual debt service (amortizing) (75.4)
Cash Flow to Equity 50.6
Reference: power volume recharged to tenant ≈ EUR 131.8m/yr
(100 MW × PUE 1.20 × 8,760 hrs × 95% avail. × EUR 132/MWh)
Yield on Cost
10.0%
EBITDA €126m / Total Cost €1,260m
DSCR
1.67x
EBITDA / Debt Service — covenant >1.20x
Cash-on-Cash
14.1%
CF to Equity €50.6m / Contrib. €360m
Equity IRR (Levered)
19.1%
15-yr hold, terminal exit at 8% cap rate
Project IRR (Unlevered)
10.7%
Total project perspective
Investor IRR (51%)
10.8%
On €360m contribution incl. soft costs
15-Year Cash Flow Model

Levered & Unlevered Cash Flow — EUR Millions

Debt amortizes fully by Year 15. Terminal value at EBITDA / 8.0% exit cap rate = EUR 1,575m. Lines draw on load. All figures illustrative.

0 1,800 1,200 600 0 Terminal Exit Y15 €1,575m Y0 1 3 5 7 9 11 13 15 +50.6/yr −360
EBITDA (project)
Equity Cash Flow (levered)
Investor CF (51% stake)
Year Opening Debt Interest Principal Debt Service Closing Debt DSCR
1900.027.048.475.4851.61.67x
3801.824.151.375.4750.41.67x
5697.620.954.575.4643.11.67x
10408.412.363.175.4345.31.67x
1573.22.273.275.40.01.67x
Sensitivity Analysis

IRR × Revenue per MW × Exit Cap Rate

Pre-computed. Base case highlighted in amber. Green = above threshold • Yellow = borderline • Red = below. CAPEX €1,200m, Debt 3% / 15yr fixed.

Equity IRR (Levered) — threshold 15%
Cap Rate ↓ / Rev/MW → EUR 1.0mEUR 1.1mEUR 1.2mEUR 1.3m EUR 1.4mEUR 1.5mEUR 1.6m
6%21.1%25.2%29.1%32.8%36.4%39.9%43.2%
7%13.5%17.1%20.5%23.9%27.1%30.2%33.2%
8%8.0%11.1%14.1%17.0%19.1%22.5%25.1%
9%3.6%6.4%9.2%11.9%14.5%17.1%19.6%
10%-0.1%2.5%5.1%7.6%10.1%12.5%15.0%
Investor IRR (51% stake) — threshold 10%
Cap Rate ↓ / Rev/MW → EUR 1.0mEUR 1.1mEUR 1.2mEUR 1.3m EUR 1.4mEUR 1.5mEUR 1.6m
6%12.6%15.1%17.4%19.6%21.7%23.8%25.7%
7%8.1%10.3%12.3%14.3%16.2%18.0%19.8%
8%4.8%6.6%8.4%9.6%10.8%12.5%14.5%
9%2.2%3.8%5.4%7.1%8.7%10.2%11.7%
10%-0.1%1.5%3.1%4.6%6.1%7.5%9.0%
Green: above threshold (15% / 10%) Yellow: borderline (7–15% / 5–10%) Red: below minimum thresholds Bold border: base case
Market Benchmarks

Comparable Hyperscale Developments — 100 MW Infrastructure

EUR-normalized. Scopes differ; Obrovac at EUR 12.6m/MW is consistent with full all-in infrastructure benchmarks and below FLAP-D premium comparables.

Benchmark / Comparable Capacity Unit Cost Implied 100 MW Location Relevance
Blackstone / Digital Realty JV (Dec 2023)~500 MW~$14.0m/MW~$1.40bFLAP-D / NoVAPremium unit-cost benchmark; largest public hyperscale deal
JLL Global DC Outlook 2026Global blended~$11.3m/MW~$1.13bGlobalAvg shell-and-core; +6% YoY from 2025
T&T 2025–2026 (shell & core)100 MW standard$10.7–11.3m$1.07–1.13bGlobalShell-and-core only — excludes electrical / cooling
T&T 2025–2026 (all-in)100 MW$16–22m/MW$1.6–2.2bGlobalFull electrical, cooling, fire — most comparable scope
Apple Data Centre (Viborg)~100 MW class~€9.2m/MW~€921mDenmarkClosest absolute scale peer; operational
Data4 / EdgeConneX Warsaw100–300 MW~€10m/MW€1.0b+Poland (CEE)Closest CEE market peer; building out
YTL / NVIDIA AI DC ParkUp to ~500 MW~€8m/MW~€4b totalMalaysiaAI / high-density benchmark; 2023–24
Obrovac Model (this project) 100 MW IT €12.6m/MW €1,260m Croatia (CEE) Memo-stage; excl. IT/GPU hardware (€13–37m+/MW)
Critical Path & Procurement Risk

Long-Lead Equipment & Regulatory Gating

Schedule risk in data center development is dominated by equipment lead times and regulatory gating items. Procurement must be initiated at or before Financial Investment Decision (FID).

60–120+ wks
Main Power Transformers & HV Switchgear
Critical path item. Must be ordered at or before FID. Global supply shortages driving extended lead times across all manufacturers. Size on 120–130 MW gross draw, not 100 MW IT load.
CRITICAL PATH
50–80 wks
Standby Generators (Large Frame)
Engine, enclosure, and switchgear package procured as a bundle. Coordinate with electrical design freeze. N+1 or 2N redundancy configuration confirmed at detailed design stage.
HIGH PRIORITY
30–60 wks
UPS Systems & Switchgear
Must couple to electrical design freeze to avoid re-specification. Coordinate with BESS integration strategy. Early vendor engagement recommended to lock delivery slots.
EARLY ENGAGEMENT
30–60 wks
Chillers / Cooling Plant
Liquid cooling CDUs for AI-density deployments may run longer. Mechanical design freeze must precede procurement. Coordinate with IT density assumptions for PUE 1.2–1.3 target.
DESIGN DEPENDENCY
HOPS Grid Connection (Croatian TSO): Multi-year timeline; often the binding schedule constraint. Facility must be sized for 120–130 MW gross grid draw (not 100 MW IT). Croatia-specific gating: firm HOPS capacity / energisation date and UPU zoning adoption status must be confirmed before construction commencement. Sequence: secure land → adopt UPU spatial plan → sign HOPS agreement → commence construction.
Required Actions Before Investment Committee

Five Items to Advance to IC