CapitaLand is getting a hyperscale data center campus situated in Shanghai to get RM3.66 billion ($757.7 million), signaling its entry into China’s data center marketplace.
Pasir Ris 8 Allgreen and Kerry submitted the highest bid of $699,999,999.99, which is 3.28% higher than the $677,777,000 put forth by Far East Organisation.
The centre, situated in Minhang District, encompasses four buildings with a gross floor space of around 75,000 square metres as well as 55 megawatts of IT electricity capability.
The facility is controlled by DailyTech, a developer and operator of information centers across China. In accordance with CapitaLand, the campus now serves two of China’s biggest telecommunications companies.
With this acquisition, CapitaLand’s joint data center portfolio represents over $2.5 billion in property assets under control.
He Jihong, CEO, information center and chief company strategy officer for CapitaLand, states that the growing numbers centers asset category represents a vital strategic business focus for CapitaLand. “Within our core markets, we’ll leverage our existing local experience and networks to grow our data center portfolio,” she states.
On CapitaLand’s entrance into China’s data center market, Puah Tze Shyang, CEO, portfolio and investment management to CapitaLand China states the purchase is in accordance with the team’s approach to pivot into fresh market assets from the nation.
“We see strong potential to expand our information center portfolio in cities including Shanghai, Beijing, Shenzhen and leverage our expanding base of new market assets to reinforce our fund management firm in tandem,” he adds.
Shares in CapitaLand near apartment at $3.74 on April 27.