AXA IM acquires Tokyo data centre for 22 billion yen
Asset manager targets real estate assets benefiting from urbanization and e-commerce
2 Dec 2020 | The Asset

AXA Investment Managers - Real Assets has acquired one of the largest data centres in Tokyo for 22 billion yen (US$211 million, 180 million euros), expanding its global data centres platform to over one billion euros (US$1.2 billion).

The company says the latest acquisition is in line with its global strategy of investing in operational real estate assets underpinned by strong structural drivers, such as urbanization and e-commerce, and the strong steady cash flows they offer.

The 20,000 square metre facility houses 2,560 data racks. The building, along with its internal infrastructure, was designed to incorporate state-of-the-art security features and lower energy consumption by 10%, the asset manager notes.

Located in Koto Ward, South Tokyo, the asset is just 7km from the city’s main financial district, Marunouchi and Otemachi, and is just a 10-minute walk from the nearest metro station offering direct routes into Tokyo’s city centre. The short distance to the central business district means the data centre can be used for both cloud services and networking purposes, even as it benefits from its close proximity to an external power source.

“This acquisition offered the rare opportunity to purchase a large-scale and high-quality, strategically located data centre in a market suffering from a chronic lack of supply, with just two other centres offering over 10,000 sqm of space in the district,” Laurent Jacquemin, head of Asia-Pacific at AXA IM - Real Assets, says, adding that demand for data storage has surged amid the widespread adoption of remote working and expanding e-commerce penetration as a result of the global pandemic.

The company has also recently secured a residential portfolio in central Tokyo for 70 billion yen, bringing its investment in the country to 173 billion yen. Across the Asia-Pacific region, assets under management have grown to 6.7 billion euros.