Xinyi.com has 5.46 billion won the data center of Tseung Kwan O
As the market becomes more and more popular for Internet and cloud computing, the demand for data centers continues to increase. The government launched the high-end data center site of the Environmental Protection Avenue in the 85th district of Tseung Kwan O in August. It was finally completed by the new land (01686) of Xindi (00016), which was adjacent to the land in October 2013, which was far above the market expectation limit. 45% of the total investment of about 5.456 billion yuan, the floor price of each floor (hereinafter referred to as the floor price) is about 4,500 yuan, compared with the floor price of the group when it was adjacent to the land in 2013, about 904 yuan, more than 5 years The explosion has nearly four times.
The newly approved land, adjacent to Tseung Kwan O, Sunrise Kangcheng Lingkai, with a total floor area of 1,12,457,700 square feet, attracted a total of 9 consortiums to compete for the competition. The result was defeated by Xinyi.com at 5.456078 trillion yuan (00083). Xinxin Holdings (00015), Garmin Group (01271) and Singapore Maple Tree Fund took off the land, and the winning bid price was more than 45% higher than the market expectation ceiling of about 3.759 billion yuan.
Floor price is 4,500, five times, 4 times
Xinyi.com has invested in another data center site in 2013 and developed into the data center project MEGA Plus last year. Xinyi.com CEO Tang Guojiang is pleased with the re-investment in land use, reflecting the Group’s confidence in the local market and stressing that the transaction price is reasonable. It is expected that the land will play a synergistic effect with MEGA Plus. Xinyi.com also issued a notice that it is expected to support the growth of Xinyi.com’s business and strengthen the income base of the group in the long run. The land price will be paid by the group’s internal resources and external resources, including unsecured loans for loans to Xindi.
According to the information, Xinyi.com bought an industrial land at Majiao Street, Shau Kei Wan, for $725.8 million in early January this year. The floor price was 3,598 yuan, which was the highest in the whole floor of the industrial land for sale in Hong Kong.
Xiao Lianghui, Managing Director of DTZ, Hong Kong, believes that Xinyi.com has invested about 4,500 yuan per square floor price, which is about 4 times higher than the floor price of adjacent land five years ago, reflecting the market demand for data center land. It will accommodate approximately 14,000 to 16,000 server racks and will be one of the largest data centers in Hong Kong to meet data center usage requirements in Tseung Kwan O and Kowloon East in the coming years.
Senior surveyor Zhang Qiaochu pointed out that the property market is going downhill. Compared with residential and commercial properties, the data center “has demand and defensiveness regardless of whether the market is good or not”, attracting developers and investors to enter the bid, and new ideas. The network itself already has adjacent land, so it is willing to enter the standard at a higher price to achieve synergy.
Revitalization of industrial buildings to change transition houses can be exempted from premium
In addition, the Development Bureau submitted a document to the Legislative Council to disclose the details of the policy of revitalizing the industrial building. It is recommended that the industrial building with a building age of 15 years or above be exempted from land premiums and will be accepted for application early next year. The plan is for a period of three years. The owners are required to designate the total floor area of the building into the cultural and art circles, creative industries and other purposes. Rents and leases are freely negotiated by the owners and tenants. As for the conversion of industrial buildings into transitional housing, the Government will flexibly deal with the planning and building design requirements and exempt the land premium. If it is a transitional house of no more than five years, it can be regarded as a temporary use that is often permitted.