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CitySpring in JV to develop S$130m S'pore data centre

CitySpring Infrastructure Trust has entered into a joint venture with Japan's Shimizu Corp to develop and lease a data centre in Singapore that is expected to cost around S$130 million.

SINGAPORE: CitySpring Infrastructure Trust has entered into a joint venture with Japan's Shimizu Corp to develop and lease a data centre in Singapore that is expected to cost around S$130 million.

Under the agreement announced on Monday, CitySpring's subsidiary CityDC Pte Ltd will hold a 51 percent stake in the joint venture, while a subsidiary of Shimizu will own the remaining 49 percent.

The joint venture will lease the data centre to 1-Net Singapore, a wholly-owned subsidiary of MediaCorp.

CitySpring -- which regards telecom infrastructure as a key area of focus -- said the total investment of around S$130 million will be half funded by equity and half funded by long-term debt.

The infrastructure trust added that it intends to develop and acquire a portfolio of data centres in Singapore and the Asia-Pacific, if and when suitable opportunities arise.

CitySpring said the global data centre industry has been growing steadily as a result of rising Internet penetration.

In Singapore, demand for data centre space has outpaced supply -- with demand growth outpacing supply growth by an average of 3 percent per annum between 2010 and 2013. 

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