In its January 2007 trading statement, IXEurope stated that the accelerated build and higher specification of phase 1 London4 is expected to result in substantially higher revenue and EBITDA from H2 2007 onwards and that total capital expenditure for phase 1 of London4 is expected to increase to £20.4m (£19.4m in 2007 and £1m in 2008). IXEurope also stated that, due to the strong demand, the Board had decided to prepare for phase 2 (5,000m² additional net space) of London4 by building the mezzanine floor at a cost of £1.1m in preparation for future build-out. London4 Phase 1 (5,000m²) remains on target to be open to customers in summer 2007.
The new funds raised are to finance the accelerated build and increased specification of London4 phase 1 (5,000m┬▓ net space) and support other build-outs in progress including Frankfurt2 and Paris2. In addition, the new funds are likely to allow for improved debt terms and share liquidity. The market for the Company's services remains strong and the Directors are not aware of any comparable data center capacity being built of similar specification and power in West London. The increased specification of London4 is expected to support increased prices to customers. All of IXEurope's build-out projects are part of the plan to bring on line a total of 35,400m┬▓ net space within the current IXDatacentre portfolio.
Guy Willner, chief executive officer, said: "Strong demand for data center capacity, particularly London4, has resulted in an acceleration of our expansion programme to a higher specification to meet demand from high-end customers with increasingly demanding data center requirements. By enhancing the quality of new data center space we are aiming to improve our margin prospects and investment returns.