The company originally behind what was pitched as Singapore's largest data center ÔÇô the Jurong Data Centre Development ÔÇô has been delisted from the Singapore Stock Exchange.

Japan Land ÔÇô a real estate company which says on its focus is on niche real estate areas ÔÇô did not provide an existing offer for shareholders and claimed it views itself as being insolvent.

The Singapore Stock Exchange rejected the company's appeal against delisting this week and major shareholder Aizawa Securities, which holds 19.92% of company shares, rejected an offer to make an exit offer to minority shareholders.

Japan Land said mounting debts, and the rejection by shareholders of an earlier takeover, led to the events which unfolded this week.

Japan Land told investors it was currently in a "net tangible liability position". As of 28 February 2011 it had only S$157,000 of intangible assets and at 28 February had total liabilities of S$16.6m and total liabilities including interest-bearing loans and borrowings amounting to S$52.6m.

"In view of the fact that the company is unable to repay all its loans and borrowings which have now fallen due to creditors, the board is of the view that the company is insolvent, Japan Land told investors.

"In addition, certain assets including shares in Japan Asia Holdings and Japan Asia Group Limited and KHC have been pledged as collateral to the aforesaid creditors, valued at S$38.3m."

Japan Land's financial problems first came to light in November last year when it was announced that Digital Realty Trust entered a definitive purchase agreement to acquire the 375,5000 sq ft data center facility opened by Japan Land in Jurong East.

The seven storey facility delivers up to 30mW of 2N UPS capacity.

At the time, Tier 1 Research senior data center analyst Jason Schafer said Singapore was an ideal location for new data center builds given that demand is expected to outstrip supply in the years ahead.

No explanation has been given to why Japan Land fell into so much financial trouble.

According to reports, Japan Land first came into trouble when a major investor in the Jurong Data Center pulled out, leaving it unable to repay some of the money owing to the main contractor for the site M+W Zander.

Japan Land sold the data center to a subsidiary of M+W Zander which in turn sold it to digital Realty Trust for S$170m.