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Singapore's Alpha Investment Partners buys Australia land for data centre project

By Asia Asset Management  
Aug 7, 2019

Singapore’s Alpha Investment Partners Ltd (Alpha), a fund management firm owned by Keppel Capital, the asset management arm of conglomerate Keppel Corporation Ltd, has acquired around 41,333 square feet of freehold land in Sydney, Australia to build a data centre.

The land was purchased by a unit of Alpha-managed Alpha Data Centre Fund (Alpha DC Fund). It’s located adjacent to a data centre owned by Keppel Data Centre Real Estate Investment Trust, a fund managed by Alpha's sister company Keppel DC REIT Management Pte. Ltd.

The new data centre will be constructed in three phases, with the first phase to be completed by the first half of 2021, Alpha says in a statement on August 5.

The company did not disclose the acquisition cost of the land or the project development cost. Keppel Capital spokespersons did not immediately respond to questions from Asia Asset Management.

Keppel Data Centres Holding, another sister company of Alpha, has been appointed as the project manager.

According to Alpha Chief Executive Officer Alvin Mah, the collaboration between Alpha DC Fund and Keppel Data Centres Holding “reflects how different business units in the Keppel Group are working together to offer investors unique opportunities”.

“By leveraging Keppel Data Centres Holding’s deep operational expertise, our newest data centre will be well-positioned to capture data centre demand and deliver optimal return for our investors,” Mr. Mah says in the statement.

The new centre will have approximately 57,000 square feet of gross floor area built to tier 3 equivalent specification, the most common of the four tier classification system for data centres.

A tier 3 centre typically has multiple power and cooling resources and a server that stays running for longer than a tier 2 but slightly less than a tier 4 centre.

Global investment in data centres is rising, driven by demand for cloud-based services and mobile applications.

Singapore sovereign wealth fund GIC Pte Ltd has been an active investor in the industry. Most recently, GIC announced a partnership with Singapore-based data centre operator Polymer Connected in June to develop a data centre campus in Indonesia. Last year, the fund formed partnerships to develop, acquire and operate data centres in the US.

Alpha and its parent company Keppel Capital had S$9.5 billion (US$6.87 billion) and S$29 billion of assets under management, respectively, at the end of 2018.