Hwa Hong sold Paya Lebar Rd data centre building for S$140m

Hwa Hong Corporation, a high-tech industrial eight-storey building housing a data centre at Paya Lebar Road has been sold for S$140M.

The building’s data centre is operated by Big Data Exchange (BDx), the owner of which has been identified as the new owner.

BDx also operates a data centre chain in China, Hong Kong and Indonesia according to its website. I Squared Capital is the private equity firm that owns this company.

Cushman & Wakefield & Savills brokered the OneTen Paya Lebar sale. They marketed the property through an expression of interests exercise that ended in October last.

The property, located at 110 Paya Lebar Road a short distance from MacPherson station MRT, is on a corner-island site with a total land area of 59,000 square foot (sq ft).

The site has been zoned Business 1 under the Urban Redevelopment Authority’s latest master plan. This is a 2.5 plot-ratio. The current gross floor area is approximately 155,500 square feet. This corresponds to a plot of about 2.63.

Market watchers pointed out that the property would have redevelopment possibilities if the height restrictions on the site were lifted and the plot-ratio increased after the relocation Paya Lebar Air Base.

Cushman & Wakefield, in a recent report said that they expect the demand for Data Centres to increase by around 25 per cent a yearly in South-east Asia & North Asia to 2028, compared to just 14 per cent a yearly in the US.

I Squared Capital manages over US$38 billion of assets in North America, Europe Asia and Latin America. Information on the company’s website shows that it has invested across a wide range of sectors including utilities, energy, digital, transport, social, environmental, and social infrastructure.

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