SuneVision data centre project stays on course
SHKP unit goes ahead with its HK$4 billion high-tier facility in Tseung Kwan O despite Google's decision to drop its plan in the area
Undeterred by Google's decision to abandon its data centre plan in Tseung Kwan O, SuneVision, the locally listed technology arm of Sun Hung Kai Properties, is going ahead with its own high-tier data centre project that could cost about HK$4 billion.
"We are very positive on the market outlook for data centres," said Peter Yan King-shun, the executive director and chief executive at SuneVision, which also has data centres in Chai Wan, Kwun Tong, Sha Tin and Tsuen Wan.
In October, the company won a site in Area 85 on Wan Po Road in Tseung Kwan O for HK$428 million, or HK$957 per square foot, in a government tender. The site, which will yield a gross floor area of 473,611 sqft, is about five minutes' drive from the one Google won in 2011.
John Siu, managing director of international property consultant Cushman & Wakefield Hong Kong, estimated SuneVision's project could involve an investment cost of HK$3.8 billion to HK$4.8 billion.
Yan did not disclose the company's total investment cost but said it would be at the low end of market estimates.
He said the first phase, or at least 60 per cent of the gross floor area, would come on stream by the end of 2018.