This strategic investment bolsters the firm’s presence in the established data center ecosystem near Tokyo. This move underscores their commitment to capitalizing on the burgeoning demand for data storage and processing capabilities in the region.
The newly acquired property is strategically located in Fuchu Intelligent Park, neighboring the Meito Sangyo Building and Fuchu Building. These latter two were previously snapped up by Gaw Capital-managed funds and are being redeveloped into carrier-neutral Tier III data centers. The new addition will be demolished and serve as Phase III of this ambitious project, catering to the ever-growing need for data storage and processing power.
With a sprawling land size of 11,233 sqm, this latest acquisition will effectively double the scale of the data centers. Once completed, the entire facility will boast a total land area of 22,202 sqm. The IT capacity is projected to increase significantly, from 40 IT MW to a staggering 78 IT MW (or 7,800 racks). This will solidify its position as the largest data center facility in Fuchu City in terms of IT capacity.
Isabella Lo, Managing Director, Principal – Investments and Head of Japan at Gaw Capital Partners, shared her enthusiasm about the expansion: “We are thrilled to be growing our data center portfolio with this strategic acquisition. By doubling our scale in Fuchu City, we position ourselves as the premier data center facility in the region regarding IT capacity. Japan’s technological advancements, particularly in artificial intelligence, drive the demand for data centers, and we are poised to deliver exceptional services to our clients.”
Kok Chye Ong, Managing Director – Head of IDC Platform, Asia (Ex-China) of Gaw Capital Partners, emphasized the strategic importance of this acquisition: “This move strengthens our Pan-Asia IDC Platform’s position. Japan’s internet economy is substantial and continues to grow, and our data centers are attracting interest from potential operators and hyperscale tenants. We remain bullish on the Japanese real estate market and are confident that our expanded capabilities will meet the dynamic needs of businesses seeking robust infrastructure solutions.”
Japan is a powerhouse in the APAC data center market, with over 3,000 MW of total IT load under development. Despite ample supply, the demand remains robust, as evidenced by Tokyo and Osaka’s combined occupancy rate of 91% in 2023. Gaw Capital Partners is committed to seizing opportunities in this sector, leveraging its expertise and network to create long-term value for investors.
Gaw Capital Partners is a leading private equity fund management company, known for its unique approach to real estate investment in Asia Pacific and other high-barrier markets globally.
The firm specializes in unlocking the potential of under-utilized real estate through innovative redesign and repositioning strategies. Gaw Capital integrates asset management operating platforms across commercial, hospitality, property development, logistics, IDC, and education sectors. Their investments cover the entire real estate spectrum, including residential, offices, retail, serviced apartments, hotels, warehouses, and IDC projects.
Since 2005, Gaw Capital has raised seven commingled funds targeting the APAC region. They also manage value-add/opportunistic funds in the US, Pan-Asia and European hospitality funds, a Growth Equity Fund, and provide services for credit and separate account direct investments globally.
As of Q4 2023, Gaw Capital has raised equity of US$22.5 billion and manages assets of US$35.9 billion.
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