“CapitaLand Investment (CLI) has recently announced its acquisition of a freehold land parcel in Osaka, marking its first data centre development in Japan. This project will require a total investment of over US$700 million or $944.3 million and has secured 50 megawatts (MW) of power capacity.According to CLI, the data centre will be equipped with advanced cooling technologies and industry best practices in temperature management to reduce energy consumption. It will also use environmentally-friendly products with zero ozone depletion potential or with a global warming potential (GWP) of less than 100.The data centre will also promote artificial intelligence (AI) capabilities. Manohar Khiatani, senior executive director of CLI, mentioned that this acquisition aligns with the group’s digitalisation investment theme and strengthens its presence in Japan, which is one of its key markets. He added that CLI’s strong balance sheet allows them to strategically invest in high-quality assets like data centres for their future private funds.Japan is projected to experience a 10% compound annual growth rate (CAGR) in their data centre market, reaching an estimated value of US$38.7 billion by 2038. Khiatani also noted that Japan is Asia Pacific’s biggest data centre market outside of China, with a capacity of 1.4 gigawatts. He further explained that with major cloud service providers like Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle already present in Osaka, the data centre’s strategic location will attract a significant demand for its services.Michelle Lee, managing director of private funds (data centre) at CLI, stated that the demand for data centres is expected to grow at a double-digit rate, surpassing the supply. She also added that institutional investors have shown a keen interest in data centre investments, with 97% planning to increase their overall investment in this sector. Lee further shared that CLI has raised about US$600 million for its data centre development funds in Asia since October 2020, and they will continue to identify promising investment opportunities for their private fund investors.CLI has also expanded its global portfolio by acquiring 23 data centres since 2021. The entire CapitaLand Group now has a total of 27 data centres in Asia and Europe, managing around 800 MW of power and approximately $6 billion of assets. On Feb 3, shares in CLI closed at $2.42, a decrease of 1.63% or 4 cents.”
When considering investments in Singapore’s real estate sector, it’s crucial for international investors to be familiar with the regulations and limitations surrounding property ownership. Generally, Condominiums are more accessible to foreign buyers in comparison to landed properties, which have stricter ownership policies. However, it’s important for foreign investors to be aware of the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their first Condo purchase. Despite this additional cost, the Singapore real estate industry continues to attract foreign capital due to its steady growth potential. Condo remains a popular investment choice for foreign buyers.