Savills Singapore and Cushman & Wakefield (NYSE: CWK) are pleased to announce that Hwa Hong Corporation Limited has successfully completed the sale of OneTen Paya Lebar, a rare freehold city fringe data centre located in Paya Lebar.
The property is a hi-tech industrial building located at the city fringe with a total gross floor area of approximately 155,503 sq ft over eight floors. It recently underwent a significant asset enhancement exercise in 2021. The asset is fully occupied by a data centre operator and benefits from the favourable outlook of the Singapore data centre market.
In addition, the rare freehold tenure of the property presents an attractive land banking opportunity for steady capital appreciation in future redevelopment. Coupled with its strategic location in the heart of Paya Lebar, OneTen Paya Lebar is poised to benefit from the regeneration and transformation arising from the relocation of Paya Lebar Air Base in 2030.
Ong Eng Yaw, Group Managing Director of Hwa Hong Corporation Limited comments “The site has been owned by the Hwa Hong for over 35 years and has witnessed our evolution from our manufacturing and logistics roots to an international property investor. This transaction represents a natural culmination of our relationship with BDx and we are pleased to see the site continue to add value to its new owners.”
Mr. Jeremy Lake, Managing Director, Investment Sales & Capital Markets, Savills Singapore comments, “The sale is a testament to the strong demand for high-quality data centre assets in Singapore. While the moratorium on new data centres has been lifted, supply remains tight with strict regulations ensuring that only the best-in-class data centres are set up in Singapore. This will continue to accumulate pent-up data centre demand in Singapore where investors and operators alike compete to strengthen their position in the data infrastructure market.”
Ms. Brenda Ong, Executive Director, Logistics & Industrial Markets at Cushman & Wakefield, says, “The outlook for Singapore data centres is promising, with demand to grow with increasing business digitalisation and connectivity while the market remains very tight with the colocation vacancy rate at 1%, the tightest in Asia Pacific. Properties like this are highly sought after due to their scarcity and strategic importance in meeting the evolving needs of businesses in the digital age.”
For more information, please visit Savills Singapore Investment Sales & Capital Markets or Cushman & Wakefield Singapore's Logistics and Industrial Services page