JLL sells Hanam Data Center to Macquarie Korea Infrastructure Fund

JLL has announced the sale of the Hanam Data Center, a hyperscale asset located in Pungsan-dong, Hanam-si, Gyeonggi-do. JLL acted as the exclusive advisor for this transaction, which involved the sale of the data center owned by a fund of IGIS Asset Management, through its subsidiary IGIS Asia Investment Management, to Macquarie Korea Infrastructure Fund.

The Hanam Data Center, initiated by IGIS Asset Management and IGIS Asia Investment Management in 2019 and completed in 2023, marks a significant event in the market as the first sale of a stabilized hyperscale data center with existing tenants in South Korea. The 12-story facility spans approximately 42,000 square meters of gross floor area and features a total power capacity of 40MW. LG CNS currently manages the operations, providing IT consulting and services.

Strategically located in the southeastern region of Greater Seoul, the Hanam Data Center is positioned to meet the growing demand for data center capacity from Seoul and Pangyo. This demand is particularly notable given the challenges new data center constructions face in securing power within the metropolitan area. The Hanam Data Center has demonstrated this demand by securing commitments for 100% of its capacity upon achieving operational readiness.

Steve Oh, CEO of IGIS Asia Investment Management, stated, "The Hanam Data Center was developed through the first-ever launched Korea data center development fund by IGIS Asia. We have since successfully launched our second data center fund and intend to further expand our investments in Asia."

Keehoon Lee, Head of Capital Markets at JLL Korea, commented, "This transaction is significant for the market and JLL, representing the successful development and sale of the first hyperscale data center in Korea. Despite the challenging environment with investor sentiment dampened by high interest rates, there is increasing interest from both domestic and international investors in data centers. Traditionally dominated by telecommunications companies, the market is now experiencing disruptive innovation and entering a new phase with the participation of global players."

Bob Tan, Executive Director, Capital Markets, Asia Pacific, JLL, added, "Seoul is a tech-savvy city with a high demand for reliable and efficient data center infrastructure, driven by the presence of major tech companies, startups, and e-commerce platforms. Despite the government’s energy policy to limit high-capacity data centers within metro Seoul, JLL expects interest to continue growing, supported by end-users who require low latency."