SUNeVision, an interconnection-focused data center operator in Hong Kong, through its subsidiary iAdvantage, today announced that it has expanded its portfolio by leasing a six-story, 129k sqft warehouse building in Fanling, New Territories, Hong Kong (Fanling).
The company is leasing the building from Orientfunds Sourcing (Holdings) Limited, a joint venture led by Sun Hung Kai Properties, for a term of more than 11 years. Notably, Sun Hung Kai Properties is also the controlling shareholder of SUNeVision with a 73.6% ownership stake.
iAdvantage Hong Kong Strategy – SUNeVision
Under this lease agreement, SUNeVision’s iAdvantage will use the Fanling property to offer data center services. Indeed, iAdvantage notes that the property is suitable for the needs of a significant customer from its data center business.
In a follow-on disclosure, SUNeVision’s iAdvantage announced that it has entered into a master service agreement (MSA) with a major hyperscale customer. For this hyperscale customer, iAdvantage will convert the Fanling building into a single-tenant data center with a total IT power capacity of 10 megawatts.
iAdvantage will invest a significant amount of capital and resources to upgrade the Fanling warehouse building. Specifically, the company will convert the property into a bespoke, single-tenant data center premises for the customer.
Furthermore, delivery of the data center space will be in phases, based on an agreed plan with the customer. Phase 1 of the project is expected to be delivered to the customer and be ready-for-service in 2022.
SUNeVision currently operates 5 data centers in Hong Kong. Additionally, the company will launch its 6th facility, at its site at Tsuen Wan Town, and 7th facility, at its site at Tseung Kwan O Town, during 2022.
Therefore, through iAdvantage’s Fanling project, SUNeVision will begin on the group’s 8th data center. Importantly, the Fanling facility will be the first single-tenant data center which the company has fully pre-committed from inception.
Lease Agreement – SUNeVision and Orientfunds Sourcing
SUNeVision’s iAdvantage is leasing the building located at 11 On Chuen Street, Fanling, New Territories, Hong Kong.
Beyond the initial lease term of 11 years and 5 months, SUNeVision’s iAdvantage has an option to renew the lease for a further term of 3 years. Additionally, the total rent payable during the term of the lease agreement amounts to $32.3m U.S. dollars (HK$251m).
SUNeVision’s iAdvantage is matching its lease term on this Fanling building with the period of the hyperscale customer contract that it is securing for its data center services.
Building Owner – Orientfunds Sourcing
Orientfunds Sourcing (Holdings) Limited is a three-way joint venture. Overall, the owners are Sun Hung Kai Properties (50%), Kwok Tsang Limited (35%), and Happy Wish International Limited (15%).