PAG Real Estate launches digital infrastructure company

PAG Real Estate launches digital infrastructure company

Asia-focused private investment manager PAG Real Estate said Monday it has launched a regional platform to capitalize on the rapidly growing demand for digital infrastructure in Asia.

The company will focus on colocation, cloud, hyperscale and enterprise data centers as well as network and fiber assets in the Asia-Pacific region.

PAG Real Estate has approximately US$2 billion in investments in the sector, with well-laid plans to invest US$10 billion over the short to medium term.

Kris Kumar will assume the role of chairman of this company.

Kris Kumar has served as the founding executive and regional head of Asia-Pacific for Digital Realty; the founder and CEO of Bridge Data Centres, and the Vice Chairman of Chindata Group Holdings post the merger of Bridge Data Centres with Chindata, which listed on the NASDAQ (CD) in September 2020.

“Kris is an icon in the digital infrastructure industry, and we are very excited to work with him to create this platform company that will serve the infrastructure needs of this new digital era that we live in,” said PAG President Jon-Paul Toppino. “With his experience and PAG’s expertise in development and investment, we are looking forward to building a robust platform that will stand the test of time.”

“With PAG’s entrepreneurial approach, decades of experience, superior investment track record and ready access to a competitive cost of capital, my perennial enthusiasm for the sector quickly resurfaced, to lift me out of my year-long retirement,” said Kumar.

“I am looking forward to helping build a platform company on the strong foundation of an already-substantive investment by PAG in the sector over the last four years. I strongly believe in our vision of becoming a diligent, customer-focused, and profitable digital infrastructure investor/operator in the region. We are assembling a strong team with a diverse skill set and best-in-class investment and operational experience, to execute this vision.”

PAG Real Estate said data usage around the world continues to expand, with strong, secular tailwinds and demand driven by an explosion in mobile data usage, streaming, and cloud services.

The Asian data center market is currently underserved, particularly in the hyperscale end of the market, and is expected to grow at a CAGR of ~10-12% through 2024. The team expects to focus efforts on Japan, Australia, and other Asian markets, acording to the company.