Hong Kong-based Gaw Capital Partners has partnered with Centrin Data to acquire, develop and operate a portfolio of internet data centre (IDC) projects in China.
The real asset manager formed the joint venture on behalf of its newly-launched IDC Fund, which is currently raising capital to target investment opportunities in China IDC assets.
The joint venture with Centrin will be seeded with the Huaqiao Project, located in Kunshan, Jiangsu, 40km from Shanghai city centre.
Currently, Centrin Data has four IDC projects under management in Beijing; in Huaqiao, in Jiangsu Province; Wuhan, in Hubei Province, and Yantai, in Shandong Province.
Humbert Pang, managing principal and head of China for Gaw Capital Partners, said the decision to establish the new fund reflected the company’s confidence in data centre assets in China.
“High barriers to entry and demand-supply imbalance makes IDCs near tier-1 cities a very scarce asset,” he said, adding that “geographical demand and supply imbalance make (them) a valuable asset with stable rental income.”
Christina Gaw, managing principal and head of capital markets for Gaw Capital Partners, said: “We see significant opportunities in the IDC sector, which is fast becoming a major theme in China as the country deepens its embrace of advanced technology.”