APAC focused logistics real estate platform ESR Cayman has completed its first asset acquisition in Hong Kong to develop 40MW data centre.
ESR said this not only marks ESR’s entry into the Hong Kong market, but also represents the further development of its data
The newly acquired asset is strategically located in Kwai Chung, one of the major data centre clusters in Hong Kong. The Group plans to work with capital partners and operators to convert the building into a data centre with a facility load of 40 megawatts and an expected GAV of approximately US$675 million upon completion.
“This is a major strategic move for ESR as it represents our first acquisition in Hong Kong and further establishes our data centre franchise,” said Jeffrey Shen and Stuart Gibson, ESR Co-founders and CoCEOs.
“Hong Kong is an important data centre market in the APAC region, with its low electricity costs, limited climate risks and established network capability. It is also one of the world’s top financial centres as well as the home to ESR’s headquarters. Entering the Hong Kong market is a key expansion strategy as we continue to build our integrated digital and logistics supply chain infrastructure platform to help fuel the new economy in APAC.”
“ESR’s foray into Hong Kong via this asset acquisition is a rare brownfield opportunity in a major data centre cluster. Set in one of the ideal locations for data centres and coupled with its meaningful scale, we are confident that the converted asset will be well positioned to provide customers with scalable and flexible solutions while creating long-term values for investors,” said Josh Daitch, ESR Group Head of Fund Management & Capital, and Rui Hua Chang, ESR Group Managing Director, Capital Markets & Investor Relations.
In April 2021, ESR announced a key asset acquisition in Japan with a plan to develop a US$2 billion multi-phase data centre campus near Osaka CBD with a total development potential of up to 78 megawatts of IT load.