Hong Kong’s biggest and last data centre plot fetches nine bids from top industry players
- Colliers estimates the 295,405 square foot plot in Tseung Kwan O’s Wan Po Road to be worth HK$3.75 billion
- The bidders include Grand Ming Group, Far East Consortium International, Goodman Group and Oneasia Network
The biggest and last remaining land parcel for a data centre ever to be sold via tender by the Hong Kong government has received nine bids, but markets observers say more needs to be done to realise its dream of becoming a smart city.
The bidders for the 295,405 square foot plot, in Tseung Kwan O’s Wan Po Road, which closed on Friday, include Sino Land, Grand Ming Group, Far East Consortium International, Goodman Group and Hong Kong-based data centre operator Oneasia Network.
Colliers estimated the parcel to be worth up to HK$3.75 billion, or HK$3,100 per sq ft, and expects the development cost at between HK$3,000 per sq ft to HK$3,500 per sq ft.
“The fact that it fetched nine bids from major operators matched our expectations,” said Hannah Jeong, head of valuation and advisory at Colliers. “As the scale of the site is very big, not everyone could join the game, especially smaller developers and individual investors with limited budgets.”
She said that land in Hong Kong is costly compared to countries like Singapore, adding that the government should allocate cheaper land in the remote areas of New Territories for data centres and offer other financial incentives.
She said Facebook built a 4 million sq ft data centre in Singapore because the government gave the land almost for free.
