Lendlease confirms $600 million Japan data centre
Lendlease has confirmed its first data centre in Japan, a facility that it said will be "one of the largest of its scale" in the country.
Developed under Lendlease Data Centre Partners (LLDCP), the facility has a development value in excess of US$600 million (A$800 million) upon completion of all phases.
Located in Greater Tokyo it will deliver more than 60,000 sqm of gross floor area – close to half of which has been pre-leased.
Lendlease CEO for Asia, Justin Gabbani, said: “This partnership is an exemplar of our updated strategy in action, leveraging our competitive edge and creating value with our partners. With our end-to-end integrated capabilities, we look forward to building on this to explore further investments in the future. This further cements our global leadership in providing best-in-class real estate solutions. Moreover, this also marks a significant milestone for the Group, adding to its global development pipeline alongside five other new urbanisation projects globally.”
LLDCP is funded by Lendlease and "a global institutional investor", with the two holding 20% and 80% stakes, respectively.
The fund’s mandate covers Australia, China, Japan, Malaysia and Singapore, and includes both completed assets and new development opportunities. Under the partnership, Lendlease undertakes development, construction, property and investment management.
For its Japan debut, LLDCP said construction will commence later this year with the initial phase due to be completed by early 2024.
Andrew Gauci, Lendlease's MD of Japan and head of telecoms and data infrastructure Asia said: “The demand for data centres in the Asia Pacific is set to grow exponentially, with internet-related services usage soaring due to the pandemic. We are excited to launch our first data centre development under Lendlease Data Centre Partners. This project is of significant scale in a sector of growing importance in the digital economy, leveraging our more than 20 years’ experience in the local communications and data infrastructure space, as well as Lendlease’s broader presence in Japan for over 30 years.”
The news broke only weeks after Princeton Digital Group (PDG) announced its first data centre in Japan, part of its plan to establish a 600MW footprint across the Asia region, as part of its strategy announced in 2020.
In recent months, Equinix and GIC started work on xScale, which includes projects currently under development in Brazil, France, Japan and other markets. ESR Cayman has confirmed its first active data centre development in the country with its acquisition of a facility in Osaka, estimated to have a gross asset value of around $2.15 billion. And Fidelity, which owns Colt Data Centre Services (DCS), entered into a joint venture agreement with Mitsui & Co to build hyperscale data centres in Japan. In May, Digital Edge acquired two further data centres in Tokyo.