▶ "Evolving Beyond Brokerage: A Market-Building Partner for Strategic Value"
SEOUL, South Korea – RSQUARE, a leading comprehensive commercial real estate service provider, announced on the 10th that the sale of the Sejong Telecom Bundang Internet Data Center (IDC) has been successfully finalized.
The transaction involved Fine Partners Asset Management as the buyer and Hana Alternative Asset Management as the seller.
This deal is being evaluated as a pioneering case of applying a "renovation-type value-add strategy" to small-to-medium-sized data center assets, a departure from the traditional market focus on hyper-scale investments.
Located in Suji-gu, Yongin-si, Gyeonggi-do, the Sejong Telecom Bundang IDC is a standalone building with seven stories above ground and one basement level, featuring a total floor area of approximately 8,816㎡ on a 3,096㎡ site.
Currently, Sejong Telecom holds a master lease for the entire building, operating it as a co-location IDC with multiple sub-tenants.
The asset garnered significant attention due to its rarity as a standalone, mid-sized IDC within the Greater Seoul Area. While most domestic data centers are owned by the "Big 3" telecommunications firms or major system integrators—limiting liquidity for institutional investors—this asset offered a structure optimized for private renovation strategies in terms of scale, location, and power capacity. Its potential was further boosted by securing an additional 3MW of power from Korea Electric Power Corporation (KEPCO) in 2024, expanding total capacity from 6.75MW to 9.75MW. This infrastructure upgrade is a key driver for increasing the leasing efficiency of the facility, which currently operates approximately 1,070 racks.
Throughout the transaction, RSQUARE managed the entire process, from seller due diligence and buyer strategy review to analyzing relocation compensation risks. "The key to this successful sale was our precise analysis of the existing lease structure and actual usage by Sejong Telecom, which allowed us to present concrete plans for remodeling feasibility and yield improvement," RSQUARE explained.
Following the acquisition, Fine Partners Asset Management plans to initiate a full-scale asset enhancement. The firm intends to reposition the facility as a high-efficiency multi-tenant IDC by optimizing sub-tenants, introducing new HVAC (heating, ventilation, and air conditioning) systems, and improving Power Usage Effectiveness (PUE). This strategy aims to raise rental rates above the market average and attract high-value tenants from the AI, Fintech, and Cloud sectors.
The Bundang/Pangyo district, where the asset is located, is considered an optimal site for data centers due to robust IT-based demand. Located within a 10-minute walk of Dongcheon Station (Shinbundang Line) and Ori Station (Suin-Bundang Line), the site offers excellent accessibility for maintenance personnel. Furthermore, the large-scale complex development project near Ori Station (570,000㎡), led by the Ministry of Land, Infrastructure and Transport and Seongnam City, is expected to drive long-term asset value appreciation.
Industry experts anticipate this deal will spark institutional interest in small-to-medium-sized IDCs. While data centers were previously viewed as illiquid assets held by large REITs or global telcos, mid-sized assets with simple usage structures and secured power infrastructure are now being recognized as ideal targets for private renovation investments.
"This transaction was a strategic sale that comprehensively considered asset structure, location, permitting risks, and power capacity. It serves as a milestone contributing to market standardization and transparency in transaction data," RSQUARE stated. "We will continue to provide customized advisory services that maximize the potential of each asset based on a deep understanding of commercial real estate structures."
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▶ "Evolving Beyond Brokerage: A Market-Building Partner for Strategic Value"
SEOUL, South Korea – RSQUARE, a leading comprehensive commercial real estate service provider, announced on the 10th that the sale of the Sejong Telecom Bundang Internet Data Center (IDC) has been successfully finalized.
The transaction involved Fine Partners Asset Management as the buyer and Hana Alternative Asset Management as the seller.
This deal is being evaluated as a pioneering case of applying a "renovation-type value-add strategy" to small-to-medium-sized data center assets, a departure from the traditional market focus on hyper-scale investments.
Located in Suji-gu, Yongin-si, Gyeonggi-do, the Sejong Telecom Bundang IDC is a standalone building with seven stories above ground and one basement level, featuring a total floor area of approximately 8,816㎡ on a 3,096㎡ site.
Currently, Sejong Telecom holds a master lease for the entire building, operating it as a co-location IDC with multiple sub-tenants.
The asset garnered significant attention due to its rarity as a standalone, mid-sized IDC within the Greater Seoul Area. While most domestic data centers are owned by the "Big 3" telecommunications firms or major system integrators—limiting liquidity for institutional investors—this asset offered a structure optimized for private renovation strategies in terms of scale, location, and power capacity. Its potential was further boosted by securing an additional 3MW of power from Korea Electric Power Corporation (KEPCO) in 2024, expanding total capacity from 6.75MW to 9.75MW. This infrastructure upgrade is a key driver for increasing the leasing efficiency of the facility, which currently operates approximately 1,070 racks.
Throughout the transaction, RSQUARE managed the entire process, from seller due diligence and buyer strategy review to analyzing relocation compensation risks. "The key to this successful sale was our precise analysis of the existing lease structure and actual usage by Sejong Telecom, which allowed us to present concrete plans for remodeling feasibility and yield improvement," RSQUARE explained.
Following the acquisition, Fine Partners Asset Management plans to initiate a full-scale asset enhancement. The firm intends to reposition the facility as a high-efficiency multi-tenant IDC by optimizing sub-tenants, introducing new HVAC (heating, ventilation, and air conditioning) systems, and improving Power Usage Effectiveness (PUE). This strategy aims to raise rental rates above the market average and attract high-value tenants from the AI, Fintech, and Cloud sectors.
The Bundang/Pangyo district, where the asset is located, is considered an optimal site for data centers due to robust IT-based demand. Located within a 10-minute walk of Dongcheon Station (Shinbundang Line) and Ori Station (Suin-Bundang Line), the site offers excellent accessibility for maintenance personnel. Furthermore, the large-scale complex development project near Ori Station (570,000㎡), led by the Ministry of Land, Infrastructure and Transport and Seongnam City, is expected to drive long-term asset value appreciation.
Industry experts anticipate this deal will spark institutional interest in small-to-medium-sized IDCs. While data centers were previously viewed as illiquid assets held by large REITs or global telcos, mid-sized assets with simple usage structures and secured power infrastructure are now being recognized as ideal targets for private renovation investments.
"This transaction was a strategic sale that comprehensively considered asset structure, location, permitting risks, and power capacity. It serves as a milestone contributing to market standardization and transparency in transaction data," RSQUARE stated. "We will continue to provide customized advisory services that maximize the potential of each asset based on a deep understanding of commercial real estate structures."