Land tender for data centre site in Tseung Kwan O expected to draw ‘strong’ interest, analysts say
- The 295,405 square foot site in Tseung Kwan O will close for tender on Friday
- The site is the first to be offered as a data centre since Sunevision, the information technology unit of Sun Hung Kai Properties, bought a site in the same area in 2013
Hong Kong’s biggest land site earmarked for development as a data centre is expected to draw intense bidding as the growth of cloud computing drives demand for such purpose-built facilities.
The 295,405 square foot site at Wan Po Road, Area 85, Tseung Kwan O will close for tender on Friday. Under a plot ratio of 4.5 times, the site will house a structure with a gross floor area of up to 1.33 million sq ft, or roughly the size of more than 19 football pitches.
“We expect this would generate a great amount of interest,” said Raymond Fung, regional director of capital markets at JLL in Hong Kong. “In the short-run, we still expect some upwards pricing pressure on data centres in Hong Kong.”
Pruden Group values the site at HK$1.99 billion (US$255 million), or HK$1,500 per sq ft.
The land parcel is the first specified for use as a data centre since Sunevision, the information technology unit of Sun Hung Kai Properties, won a lot at tender for HK$428 million, or HK$904 per sq ft, in the same area in 2013.
