CapitaLand Ascendas Reit (CLAR) has completed its acquisition of a 49% stake in a data centre asset located in Greater Osaka, Japan, the Reit said in a May 7 bourse filing. CLAR first announced the proposed purchase of the interest in the data centre for $620.7 million on March 24. 

The deal represents the largest single-asset data centre sale in Japan’s history, according to JLL, which helped broker the deal. A fund managed by Mitsui & Co Realty Management, a subsidiary of Japan’s Mitsui & Co, holds the remaining interest in the 40.5MW, Tier III hyperscale data centre.

To help fund the acquisition, CLAR had launched a private placement and preferential offering on March 24. The equity fundraise closed the following day with gross proceeds totalling $903.5 million.

Read also: CapitaLand Ascendas Reit raises $903.5 mil from private placement, preferential offering

To date, the Reit has used $567.9 million of the proceeds to partially finance several recent acquisitions. Of this figure, $188.3 million was allocated to the purchase of the 49% stake in the Greater Osaka data centre.

According to JLL, Japan’s data centre market is seeing a surge of interest from institutional investors. “The Japanese data centre market is at the forefront of the much-anticipated ‘capital recycling phase’ of stabilised, operational data centre assets,” commented Luke Jackson, JLL’s co-head of data for data centre capital markets in Asia Pacific, in a May 11 release.

Japan is the second-largest data centre market among developed countries after the US, generating revenue of US$23.4 billion ($29.7 billion) in 2024, says JLL. The firm projects revenue to grow by an annual average growth rate of 6.7% between 2025 and 2030, reaching total revenue of US$33.4 billion by 2030.