Macquarie Korea Infrastructure Fund (MKIF) expands digital portfolio with acquisition of its first data centre. According to the press release by MKIF, the hyper-scale data center facility was acquired from Seoul-based IGIS Asset Management Co. for KRW734billion (US$538.4 million).
News that MKIF might purchase the facility first emerged in June 2024 and the official transaction is set to be completed in September.
With a gross floor area of 41,919 square meters and 12 floors, the newly acquired data center sits in Hanam-si, around 14 kilometers away from Seoul. In the press release, MKIF highlighted that the Korea government has recently announced to enforce stronger restrictions on new supply of data centers within the Greater Seoul Area (GSA) in response to the growing burden on electricity capacity and grid. While GSA is considered the optimal location for data centres in Korea due to the robust demand from corporations and well-developed infrastructure, new policy adjustment plans would see an increase in demand for established data centres within close proximity of Seoul.
MKIF will spend a total investment amount of KRW918 billion. Of this, KRW303 billion will be funded through the company’s special purpose entity, Green Digital Infra Co., Ltd (GDI). The remaining KRW615 billion will be sourced from lenders, including KRW495 billion in senior loans and a KRW120 billion bridge loan, both to be issued by GDI. This total investment amount includes the transaction cost and additional capital required to complete remaining mechanical, electrical and plumbing works at the data centre.
If closed, this deal will be the first development and sale of a domestic data centre by a Korean real estate firm.