Australia’s Goodman Group (GMG.AX) announced on Friday the formation of a $2.7 billion investment consortium with major international pension funds and investors to develop data centre infrastructure across Hong Kong.
Key Details
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The consortium includes Dutch investors PGGM and APG, the Canada Pension Plan Investment Board, and CBRE Investment Management’s Indirect Private Real Estate Strategies. An unnamed Middle Eastern investor is also part of the group.
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Goodman will hold a 20% cornerstone stake in the partnership.
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The company’s shares rose 1% to A$35.08, nearing a five-month high, outperforming the flat S&P/ASX 200 index.
Assets and Market Position
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The consortium will control four existing data centres Goodman currently holds in Hong Kong plus two centres under development.
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Goodman’s portfolio represents about 30% of Hong Kong’s data centre market by power capacity.
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Goodman also maintains similar data centre partnerships in Japan and Europe, with the Japanese partnership expected to hold $1.1 billion in assets by end of 2025.
Future Plans and Market Trends
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Goodman’s CEO Greg Goodman highlighted that part of the company’s A$10 billion industrial property portfolio in Hong Kong may be redeveloped into data centres and integrated into the partnership.
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He pointed out strong demand coming from China, driven by the rapid growth of artificial intelligence and digital transformation sectors.
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Goodman raised A$2.54 billion in February through a share placement to fund global data centre expansion efforts.