Gaw Capital raises $1.3bn for new Chinese IDC platform
In a , Gaw Capital revealed that it plans to use the US$1.3bn raised to invest in a portfolio of projects to be carried out in partnership with cloud data centre developers and operators in the Chinese market.
Courtesy of Gaw Capital
“We are delighted to complete the final close of fundraising for our IDC platform, following the highly successful fundraising round for our Gateway Real Estate Fund VI. A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) is the largest investor in the IDC Platform, with additional commitments made by other global institutional investors,” commented .
“These commitments we have received are a strong vote of confidence in Gaw Capital’s approach to IDC assets, which is a focused sector for us, and we have further plans to grow into other Asia regional markets.”
The move towards the data centre industry is a relatively new direction for Gaw Capital, which has been principally focused on the residential real estate, commercial office, retail mall, serviced apartment, hospitality and logistics areas. According to the company’s statement, the move has been prompted by strong growth in the Chinese data centre industry.
Between 2010 and 2018, the Chinese data centre market grew at a CAGR of 37%, from $1.49bn to $18.7bn, representing a pace of growth more than twice the global average. Gaw Capital believes that this pattern will continue in the coming decade, as China further digitalises its economy, an event that is being increasingly catalysed by the nation’s .
,added that, “Gaw Capital Partners is extremely pleased to be teaming up with industry leaders and outstanding operating teams to invest in IDC projects. We have seen good results thanks to our operating partners’ strong execution capabilities. Amid the backdrop of pandemic and the rapid adoption of 5G in China, there is a strong demand for data processing services due to the increasing use of data because of the social distancing measures. With most social and economic activities migrating online, data centers in promising locations along the densely populated region of China are emerging as valuable assets that produce stable rental income.”
Gaw Capital has been operating since 2005, and currently oversees six large scale investment funds in the Chinese region, as well as additional interests in Vietnam and the US.
GTR and SEGRO agree first UK data centre facility
SEGRO, a property investment and development company, has announced it has come to an agreement with the European data centre platform, Global Technical Realty (GTR) to construct its first UK-based data centre. SEGRO claims that the facility, which will span a total area of 400,711 sq ft, will be located in Slough and is to become “the largest data centre campus in the UK’s premier data centre and communications hub”.
What will SEGRO’s data centre facility be used for?
Supported by the global investment firm KKR, Global Technical Realty says it will be using the facility’s space on a 25-year term to operate bespoke data centres for high-growth global technology companies. The new facility aims to support the growing demand for third-party data centre provision amid ever-increasing growth in data usage and cloud services adoption.
Franek Sodzawiczny, CEO & Founder of GTR, said: “We are excited to be back in the UK alongside our partner KKR and look forward to working closely with SEGRO to deliver this state-of-the-art data centre campus. The data centre space is a fast-moving one. GTR was established to support its customers in providing a data centre solution wherever in the world there is a demand for it. We are delighted that the UK will become home to our flagship concept”.
James Craddock, Managing Director, Thames Valley at SEGRO, said: “We’re pleased to welcome GTR as the latest data centre operator to our thriving estate and our team of experts look forward to developing a stunning new facility for them and their customers. “Homeworking, data streaming, e-commerce and businesses’ reliance on cloud services have all grown during the pandemic, meaning demand for data centres is unabated.
“Slough Trading Estate is home to Europe’s largest data centre cluster and data centres are increasingly regarded as part of our key national infrastructure given the critical role they play in our daily lives”, he added.
The facility is expected to be delivered in two phases with operations beginning by Q4 of next year. The first phase plans to provide 132,575 sq ft of space phase two will create 268,136 sq ft of space. “Vacant possession of the site delivered to the customer by early 2022”, SEGRO said.
The project is also expected to create around 200 jobs during its construction, and a further 80 permanent roles once completed.