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REITs to Seek Data Centres Even After Pandemic on Digitalisation Trend, Reports Show

REITs to Seek Data Centres Even After Pandemic on Digitalisation Trend, Reports Show

July 14, 2021 – In a recent analysis, S&P Global Market Intelligence said data centres are likely to be a key investment focus for Asian real estate investment trusts as more companies seek to become increasingly digital. S&P cited a report by property consultant Cushman & Wakefield.

“It’s now evident that an increasing number of REITs that were originally focused on industrial logistics are now entering the data centre sector to achieve expansion in both market scale and profitability,” according to Cushman & Wakefield’s 2020-2021 Asia REIT Market Report emailed to the media on July 12. 

Mapletree Industrial Trust, Keppel DC REIT, Mitsui Fudosan Logistics Park Inc. and Cromwell European REIT all acquired data centre assets in the last two years, it noted.

Singapore-based Keppel DC REIT, the only REIT in Asia focused on data centres as of 2020-end, was the top performer in its home market with a 38% annualized total return in 2020, the report said.

Data centre REITs in other parts of the world also logged strong earnings performance in 2020 thanks to the consistent growth of the data centre sector fueled by the rise of e-commerce, the development of internet industries and big data, according to the report.

Read more here..

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