Sell Contracted Revenues from Your Hyperscale Lease

You place the revenues into a dedicated bankruptcy remote entity. The capital provider buys those cash flows outright. Lease payments, colocation payments, hosting payments, contracted capacity payments, power cost reimbursements, interconnection fees and cross connect fees all qualify when backed by an executed lease or power agreement. By power agreement we mean a long term contract where the owner supplies controlled power to the data center and receives contracted payments that can be sold as revenue, not mere ownership of power or a utility contract where the owner only buys power. The transaction is a true sale, so the proceeds do not appear as balance sheet debt. Existing facilities and covenants stay intact. You keep ownership and operating control of the facility throughout. Pricing depends on tenant credit, lease term and structure, and the final figure is set in the term sheet.

Send the executed lease or power agreement, the project stage and the tenant credit profile to Edward Freeman at (317) 452 6990 or info@peersense.com so we can place the file with an institutional capital provider in our network.

On a ground up build the total purchase price of up to 89 percent of contracted lease value releases in stages as construction advances. At financial close the purchase agreement is signed, the revenues are assigned to the bankruptcy remote entity, a controlled account opens, and the first funding covers early costs such as site work, deposits and long lead equipment. Later draws release against milestones such as site work complete, shell complete, power and cooling installed, and commissioning. An independent construction monitor reviews each draw against the budget and schedule. Contractors provide lien waivers and the lease must stay in good standing. Funds move through a disbursement agent to the contractors. A portion of each draw is held back until substantial completion. When the tenant accepts the space at rent commencement the final disbursement, including the holdback, releases. You retain ownership of the facility the entire time.

The structure works with revenue from Amazon Web Services, Microsoft Azure, Google Cloud, Meta, Apple, Oracle Cloud, IBM Cloud or NVIDIA. If the tenant is not one of these operators the lease must carry a guaranty from one of them or a comparable investment grade parent. Minimum investment grade is BBB minus or Baa3 on the S&P, Moody's or Fitch scales. The lease or power agreement must run at least 15 years and cover the period being sold.

The same structure applies to an operating facility with a contracted lease, where the purchase price funds at closing, and to an expansion on an existing campus backed by a new executed lease. A ground up file moves when land is owned or under contract, zoning entitlements and environmental clearances are complete, building permits are issued or at final approval, power is secured through an executed utility agreement or interconnection with capacity committed to the site, water supply or water rights are secured for cooling, and a committed hyperscale lease or power agreement is in place.

We prepare the institutional package and run the process with the capital provider. The provider funds the upfront purchase price at closing. The tenant pays into the controlled account. An agreed waterfall directs payments to the capital provider and returns any residual to you. Capital flows appear on a permissioned dashboard visible to all stakeholders. PeerSense sources capital through a curated network of commercial lenders and capital sources, introduces, positions and places the transaction, and is compensated at close.

Send the executed lease or power agreement, the project stage and the tenant credit profile to Edward Freeman at (317) 452 6990 or info@peersense.com. Talk to PeerSense.