CapitaLand Investment establishes China data centre development fund with $1 bil in investments

CapitaLand Investment establishes China data centre development fundCapitaLand Investment (CLI) has set up a China Data Centre Partners (CDCP) fund with a commitment to invest in two hyperscale data centre development projects in Greater Beijing. When finished, the fund will add an estimated $1 billion to the company’s Funds Under Management (FUM). The total equity committed to the fund is $530 million, with existing and new global institutional investor clients holding 80% and CLI holding the remaining 20%.

CDCP is estimated to be completed in 2025 and is projected to deliver over 100 megawatts (MW) of power to meet the increase in demand from Beijing. These two data centres are well positioned to benefit from the close proximity to established data centre clusters and key network nodes of leading Chinese cloud service providers and internet companies.

The accelerated growth of digital usage has created demand for data centres and China’s data centre market grew 34.6% year-on-year to $60 billion in 2021 following a 43.3% year-on-year growth in 2020. Establishing this new fund is in line with CLI’s strategy to grow its portfolio of new economy assets and enhance its long-term business resilience.

The two projects are designed to meet LEED Gold standards, incorporating energy-saving solutions like high efficiency fan wall cooling systems, temperature management best practices and recycling waste heat from the servers to heat offices.

Patrick Boocock, CEO of CLI’s private equity alternative assets, said: “We are seeing strong investor interest as the surge in demand for cloud computing, 5G technology, and e-commerce are driving growth in this sector. Leveraging our strength in real estate, we are actively building our capabilities in real assets and growing our alternative assets platform. CDCP is our third data centre development fund, following the establishment of two such funds in South Korea. We are excited to bring our capabilities to the China market and advance our ambition of becoming a major global digital infrastructure player.”

Puah Tze Shyang, CEO of CLI China, said: “As a leading global real estate investment manager with about 30 years of experience in China, we are able to leverage our wide network and deep expertise to bring quality assets to international investors who are keen to invest in China across different asset classes including data centres. CLI’s competitive advantage lies in our position as a vertically integrated group in China with a full range of capabilities, from investment sourcing, development, having a strong customer network to operations.”

CLI China has $46 billion of AUM in the country and the CDCP fund will invest in two highly sought-after data centre projects in prime locations. According to projections, this market is expected to grow 24% annually until 2025.

Michelle Lee, Managing Director of CLI’s Private Funds (Data Centre), said: “There is strong interest in CLI’s future data centre projects in China and Asia The Myst Pacific at large, and we are actively seeking to grow in this sector.”

CLI closed 3 cents lower or 0.78% down at $3.82 on Feb 21. This article first appeared on .

CapitaLand Investment (CLI) has created a China Data Centre Partners (CDCP) fund to invest in two hyperscale data centre developments in Greater Beijing. Targeting to boost CLI’s Funds Under Management (FUM) by $1 billion, CDCP will have an equity committed amount of $530 million with 80% of the stake split among existing and new global institutional investor clients, and the remainder held by CLI itself.

The projects are estimated to be finished in 2025, promising to deliver over 100 megawatts (MW) of energy to meet the increasing demand from Beijing. The two data centres are well-placed to leverage on their locations near established data centre clusters and key nodes of leading cloud service providers and internet companies in the country.

The accelerated growth of digital usage has driven the demand for data centres in China and its market climbed to $60 billion in 2021, growing 34.6% year-on-year following a 43.3% increase in 2020. Establishing CDCP is a part of CLI’s strategy to increase its AUM of new economy assets and enhance its business resilience.

The two data centres adhere to LEED Gold standards, introducing energy-saving solutions such as high efficiency fan wall cooling systems, temperature management techniques, and reuse of the waste heat from servers to heat offices.

CLI CEO of Private Equity Alternative Assets, Patrick Boocock, commented: “We are seeing strong investor interest as the surge in demand for cloud computing, 5G technology, and e-commerce are driving growth in this sector. Leveraging our strength in real estate, we are actively building our capabilities in real assets and growing our alternative assets platform. CDCP is our third data centre development fund and we are looking forward to bringing our capabilities to the China market and becoming a major global digital infrastructure player.”

Puah Tze Shyang, CEO of CLI China, said: “As a leading global real estate investment manager with about 30 years of experience in China, we are able to leverage our wide network and deep expertise to bring quality assets to international investors who are keen to invest in China across different asset classes including data centres. CLI’s competitive advantage lies in our position as a vertically integrated group in China with a full range of capabilities.”

With $46 billion of AUM in China and strong interest in CLI’s future projects, the CDCP is set to invest in two data centre projects located in prime locations with expected growth of 24% annually by 2025.

Michelle Lee, Managing Director of CLI’s Private Funds (Data Centre), stated: “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 closed 3 cents lower or 0.78% down at $3.82 on Feb 21. This article first appeared on .