Sunday, 12th July 2020

Kwai Chung data centre long-term lease agreement

Hon Kwok Land Investment Company's wholly-owned subsidiary, Gold Famous Development Limited, has entered into a long-term lease agreement with a global data centre industry leader for en-bloc space of the Group's newly completed data centre in Kwai Chung. This move is a milestone, expanding Hon Kwok Land's capability to develop special-purpose properties with highly specific building requirements for enterprise customers. It also marks an important advance to the Group's portfolio by leveraging its advantage as a property developer and construction conglomerate.

The newly completed data centre is a 14-storey building with a GFA of about 228,000 square feet, designed for data centre purpose with UTI Tier III standards. To address enterprise requirements for operational stability, the building features transformer rooms of 132kV and 11kV powered by CLP Power Hong Kong Limited, providing the facilities with a 50MVA + 26 MVA dual-feed power supplies. It is currently the only data centre capable of providing high-density power supply with 24 MW IT loads in Hong Kong that has been built in recent years. The data centre is expected to commence full operations by September 2021.

Mr. James Wong Jr., Executive Director of Hon Kwok Land, said, "The data centre market is a new direction for us. With more than 40 years in the property business, the Group is sensitive to market trends. We saw that the advent of 5G mobile networks in Hong Kong would spur a vast need for storing and processing data. Therefore, we developed and funded this data centre project from 2015 and completed the building utilising the advantages of Chinney Alliance Group Limited ("Chinney Alliance", Stock Code: 0385) for its extensive experiences and expertise in foundation works, superstructure construction and building services. In particular, our fellow subsidiary Chinney Construction Co. Ltd. designed and built this highly technical structure. Designed to be an innovative data centre, this project goes beyond conventional investment, construction, design and facility management. It merges carrier-neutral networks, communication and information security and unified management solutions."

Chinney Construction Group, a subsidiary of Chinney Alliance specialising in superstructure works in Hong Kong and Macau, provided the overall design and build services including data centre design, project management, construction and MEP infrastructure installation services to this building.

Generating stable and recurring income stream

The successful leasing of this data centre could ensure a stable and recurring income stream to Hon Kwok Land, thus strengthening its financial capability for future development and to meet challenges from the ever-changing business environment.

"The completion and the successful leasing of this data centre represent a new chapter in Hon Kwok Land's project development. In addition to a long history of developing residential and commercial buildings, the Group is now poised to also diversify our project portfolio and tap the potential for alternative property investments. We are confident that the partnership with Chinney Alliance will give the Group an edge in capturing opportunities in data processing and storage space", Mr. Wong noted.
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