Grand Ming’s iTech Tower 3 complex (Image: DC Byte)
Amazon Web Services has agreed to buy two data centre projects in Hong Kong’s New Territories from debt-laden developer Grand Ming Group for up to HK$2.45 billion ($312 million), in a deal that would turn an existing tenant into the owner.
The digital infrastructure unit of the e-commerce titan signed agreements after trading closed Friday to acquire iTech Towers 3.1 and 3.2 in the Fanling area for a base HK$2.18 billion, with potential additional compensation of up to HK$265.8 million tied to completion of the remaining phases of the twin projects, according to Grand Ming’s filing.
The Hong Kong builder’s sale of the two properties follows two announcements of negotiations with separate buyers last year, with both of those attempts failing to result in a deal. Referring to “the group’s pressing need to reduce debt”, Grand Ming characterised the sale as a necessary part of a restructuring after the auditor of its…