CapitaLand Investment sets up China data centre development fund
Sign up now: Get ST's newsletters delivered to your inbox
The new fund is committed to investing in two hyperscale data centre development projects in China.
PHOTO: CAPITALAND INVESTMENT
Michelle Zhu
Follow topic:
SINGAPORE - CapitaLand Investment (CLI) has established a China data centre development fund committed to investing in two hyperscale data centre development projects in the Greater Beijing area.
This will add about $1 billion to CLI’s funds under management upon completion of the projects, said the real estate investment manager on Wednesday.
The total equity committed to the new fund – CapitaLand China Data Centre Partners (CDCP) – is $530 million.
Existing and new global institutional investor clients hold an 80 per cent effective stake in the fund, with CLI holding the remaining 20 per cent.
This represents CLI’s third data centre development fund following the establishment of two such funds in South Korea.
The China data centre development projects are expected to be completed in 2025 and will deliver more than 100MW of power.
According to CLI, these two data centres are poised to capture strong demand from Beijing given their close location to established data centre clusters, as well as key network nodes of leading Chinese cloud service providers and Internet companies.
CLI said the establishment of CDCP is in line with its strategy of growing its portfolio of new economy assets under management and enhancing long-term business resilience.
“We are excited to bring our capabilities to the China market and advance our ambition of becoming a major global digital infrastructure player,” said Mr Patrick Boocock, chief executive of private equity alternative assets at CLI.
Mr Boocock, who also oversees the growth of CLI’s global data centre business, noted strong investor interest in data centres amid a surge in demand for cloud computing, 5G technology and e-commerce.
Ms Michelle Lee, managing director for private funds (data centre) at CLI, said: “There is strong interest in CLI’s future data centre projects in China and Asia-Pacific at large, and we are actively seeking to grow in this sector.”
CLI ended three cents, or 0.79 per cent, higher at 3.85 on Wednesday.
