Hong Kong-based real estate private equity firm Gaw Capital Partners announced Monday that the firm, through a fund under its management, has acquired a property located in Fuchu Intelligent Park, Fuchu City, Japan.

Gaw Capital Partners said in a statement that this strategic investment further strengthens the firm’s presence in the well-established data center cluster within 30 kilometers from central Tokyo, which is also home to five high-end internet exchange hubs.

It is noted that the property is situated near Meito Sangyo Building and Fuchu Building in Fuchu Intelligent Park, both of which were acquired in 2021 and 2022 respectively by funds under Gaw Capital’s management and are currently under going redevelopment into carrier-neutral Tier III data centers as Phase I and II.

The new property will be demolished and redeveloped into Phase III of the data centers to capture the expanding demand in the market.

Spanning a land size of 11,233 square meters (sqm), the property’s addition will double the scale of the data centers, resulting in a total land size of 22,202 sqm.

Subject to final design, the information technology (IT) capacity of the data centers is projected to increase from 40 IT megawatt (MW) to 78 IT MW (equivalent to 7,800 racks), which will make it the largest data center facility in Fuchu City in terms of IT capacity.

Moreover, beyond the construction economies of scale it brings, the acquisition of the property is expected to deliver significant strategic value to both the data centers and Gaw Capital’s Pan-Asia IDC Platform.

“We are excited to expand our data center portfolio with the acquisition of this new property,

“The completion of the transaction allows us to double the scale of our data centers in Fuchu City, positioning us as the largest data center facility in Fuchu City in terms of IT capacity,” said Isabella Lo, Managing Director, Principal – Investments and Head of Japan at Gaw Capital Partners.

According to her, technological advancements in Japan, especially the ever-growing development of artificial intelligence (AI), which requires exponential computing power, will continue to drive demand for data centers.

“The strategic location along with enhanced capabilities of our expanded data center footprint will enable us to deliver exceptional services to our clients across the region,” she added.

Kok Chye Ong, Managing Director – Head of IDC Platform, Asia (Ex-China) of Gaw Capital Partners, added that this acquisition reinforces the strategic positioning of their Pan-Asia IDC Platform.

“Japan has a sizable internet economy that is expected to continue growing across all key segments and our data centers attract strong interest from potential operators and hyperscale tenants,

“We remain optimistic towards the Japanese real estate market and believe our expanded data center capabilities will enable us to meet the evolving needs of businesses seeking reliable and scalable infrastructure solutions in the country,” he added.

It is noted that with over 3,000 MW of total IT load under development, Japan is among the most developed data center markets in Asia Pacific (APAC).

Despite large volumes of supply coming online in recent years, the Japan internet data center (IDC) market continues to demonstrate strong demand signals, as evidenced by a combined occupancy rate of 91 percent for Tokyo and Osaka in 2023, based on the built put IT capacity which increased from 940 MW in 2020 to 1,202 MW in 2023 with a compound annual growth rate (CAGR) of 8.6 percent.

Gaw Capital Partners said the firm remains committed to identifying and capitalizing on opportunities in the data center sector, leveraging its expertise and network to drive long-term value for our investors.

Gaw Capital Partners is a private equity fund management company focusing on real estate markets in Asia Pacific and other high barrier-to-entry markets globally.

Specializing in adding strategic value to under-utilized real estate through redesign and repositioning, the firm runs an integrated business model with its own in-house asset management operating platforms in commercial, hospitality, property development, logistics, internet data center (IDC) and education.

The firm’s investments span the entire spectrum of real estate sectors, including residential development, offices, retail malls, serviced apartments, hotels, logistics warehouses and IDC projects.

Gaw Capital has raised seven commingled funds targeting the APAC region since 2005.

The firm also manages value-add/opportunistic funds in the US, a Pan-Asia hospitality fund, a European hospitality fund, a Growth Equity Fund and it also provides services for credit investments and separate account direct investments globally.

It has raised equity of $22.5 billion since 2005 with assets of $35.9 billion under management as of the fourth quarter of 2023.

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