The Asia Pacific Cities Fund (APCF), has acquired a data centre in Hong Kong, the fund’s first investment in the city.
APCF is a part of US asset manager Nuveen and acquired the centre for HK$2.88 billion ($371 million) in what it described as “a rare off-market opportunity”, according to a report in Asia Financial. The Cargo Consolidation Complex is a fully-occupied data centre totalling 270,000 square feet of gross floor area in the Kwai Chung district of Hong Kong, the company said.
“Hong Kong is a critical financial and technology hub and one of the most mature data centre markets in Asia with rich network connectivity, robust infrastructure and healthy market fundamentals, making this an important strategic investment,” Nuveen chief investment officer Louise Kavanagh said. Data centre investment reached $5.1 billion in June 2021, with Hong Kong and China mainland experiencing the strongest growth, accounting for over 60 per cent of the volume, according to industry watchers.
The region’s prime data centre markets of Hong Kong, Singapore, Tokyo and Sydney are expected to account for around 50 per cent of the global data centre co-location market by 2025. “APCF seeks durable income and capital appreciation from a balanced and diversified portfolio of real estate investments whose properties are located in or around a defined list of investment cities in Asia Pacific selected for their resilience,” Kavanagh added.
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