Nuveen Bought HK Data Centre for HK$2.88 billion
Recently, Nuveen announced the acquisition of a data centre in Hong Kong for HK$2.88 billion. The property is near the Kwai Tsing container terminal with a total GFA of 266,200 per square feet (sq ft), and is currently fully leased to local telecom leader PCCW. The unit rate is about HK$10,800/sq ft.
The acquisition indicates Nuveen’s first debut in HK and recorded the new highest acquisition unit rate in the subject area. The property has been traded many times in recent years. Lorraine Loh acquired the Property from PAG in 2018 for HK$2 billion and sold for HK$2.88 billion with HK$0.88 billion capital appreciation this time. In 2021, Mapletree, ESR and GDS also purchased land or industrial properties to develop data centres in Hong Kong. As Asia’s financial capital, growing demand has been witnessed on the market, which drives data centre assets have become popular investment targets.