Logistics real estate firm ESR has sold a fully-leased data center and logistics facility outside Seoul, South Korea.
The company this week announced that its South Korean platform, ESR Kendall Square (ESRKS) has completed the sale of Ilsan Distribution Centre data and logistics center in Goyang.
ESR acquired the 44,600 sqm facility in 2018 through its ESRKS Korea Income JV fund. After securing a 15-year lease contract with local telco SK Broadband, a portion of the site was converted for data center use.
The site’s new owner and terms of the deal weren’t shared. DCD has asked for more details.
Jeffrey Shen and Stuart Gibson, ESR Group co-founders and co-CEOs, said: “The surge in demand for AI-driven technologies and cloud services has intensified the need for data centers capable of processing vast amounts of information.
"This deal has highlighted our asset enhancement expertise to convert part of a logistics asset for data center usage and increase its value. Our successful sale of this fully-leased Asset also demonstrates the inherent high value of ESRKS’ portfolio due to their excellent quality and location.”
ESR, with backing from investors such as Warburg Pincus, has plans to build a data center ecosystem across the region - buying a data center in Osaka, Japan, in April 2021, which it plans to develop into a three-facility campus.
ESR has previously said it is developing a portfolio of data centers in Hong Kong, Osaka, Tokyo, Seoul, Sydney, Mumbai, and Singapore. ESR subsidiary ARA Asset Management also has a data center footprint through its Logos Group unit, which has partnered with Pure Data Centres for a 20MW facility in Indonesia.
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