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.
Pre-Commitment
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.
Redevelopment Plan
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.
Expanding Portfolio
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).
Duration Matching
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%).
