Goodman Group to Create a $ 2.7 Billion Investment Consortium
Australia's Goodman Group is set to create a $2.7 billion investment consortium alongside international pension funds and investors to develop data center operations throughout Hong Kong. The industrial property company announced its collaboration with Dutch investors PGGM and APG, the Canada Pension Plan Investment Board, and CBRE Investment Management's Indirect Private Real Estate Strategies, along with an unnamed investor from the Middle East.
Goodman will take a 20 percent cornerstone stake in the venture. The group will possess four existing data centers in Hong Kong that are part of Goodman's industrial partnership, in addition to two centers that are under development. Goodman's holdings represent roughly 30 percent of Hong Kong's data center market based on power capacity.
The company, which has similar partnerships for data centers in Japan and Europe, projected that its Japanese operations will reach $1.1 billion in assets by the close of 2025. Goodman has an A$10 billion ($6.57 billion) industrial property portfolio in Hong Kong, a portion of which could potentially be repurposed for data centers in the future, according to Chief Executive Greg Goodman.
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"There are possibilities within the industrial portfolio. We essentially need to redevelop them into data centers, and these would then be included in this partnership for further development," Goodman stated.
Currently, there is a substantial interest coming from China; we've observed a strong push toward artificial intelligence there.
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China is experiencing significant growth in its digital evolution and the entire AI sector, which means many Chinese operators will also likely show interest in Hong Kong.
In February, Goodman secured $2.54 billion through a share placement to support the expansion of its global data center operations.