SINGAPORE (EDGEPROP) - CapitaLand is acquiring a hyperscale data centre campus located in Shanghai for RMB3.66 billion ($757.7 million), marking its entry into China's data centre market.

In a news release dated April 27, the group states it is acquiring the asset via the purchase of 100% equity interest in two companies from vendors AVIC Trust (an investment arm of Shanghai-listed AVIC Capital) and an unrelated third-party.

The facility, located in Minhang District, encompasses four buildings with a gross floor area of up to 75,000 square metres and up to 55 megawatts of IT power capacity.

The facility is operated by DailyTech, a developer and operator of data centres across China. According to CapitaLand, the campus currently serves two of China’s largest telecommunications companies.

Completion of the transaction is expected by 3Q 2021, subject to fulfilment of certain conditions precedent.

With this acquisition, CapitaLand’s combined data centre portfolio represents more than $2.5 billion in real estate assets under management.

Read more: Growth opportunities in data centre sector to be led by demand from emerging regional markets: JLL

He Jihong, CEO, data centre and chief corporate strategy officer for CapitaLand, says that the growing data centres asset class represents a key strategic business focus for CapitaLand. “In our core markets, we will leverage our existing local expertise and networks to further grow our data centre portfolio,” she says.

On CapitaLand’s entry into China’s data centre market, Puah Tze Shyang, CEO, investment and portfolio management for CapitaLand China says that the acquisition is in line with the group’s strategy to pivot into new economy assets in the country.

“We see strong potential to expand our data centre portfolio in cities such as Shanghai, Beijing, Shenzhen and leverage our growing base of new economy assets to bolster our fund management business in tandem,” he adds.

Shares in CapitaLand close flat at $3.74 on April 27.