VNET and Dajia Investment Ink Definitive Agreement on a Pre-REITs Fund

Core Viewpoint - VNET Group, Inc. has entered into a definitive agreement with Dajia Investment Holding Company Ltd. to establish a pre-REITs fund aimed at investing in hyperscale data centers in mainland China, highlighting a significant trend of institutional investment in new infrastructure projects in the region [1][2]. Company Overview - VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China, offering hosting and related services to a diverse customer base across more than 30 cities [4]. - The company serves over 7,000 enterprise customers, including internet companies, government entities, and small to mid-sized enterprises [4]. Investment Details - The initial investment for the fund will focus on the first and second phases of VNET's Taicang IDC Campus, which has a total IT capacity of approximately 210MW and an estimated value of RMB5.74 billion, reflecting an implied post-closing valuation of about 10.1x EV/EBITDA [2]. - VNET will maintain a 51% equity interest in the assets through the fund, while Dajia will hold the remaining 49% [2]. Strategic Implications - The transaction is expected to enhance VNET's capital management and balance sheet efficiency, allowing the company to pursue innovative financing structures and explore exits for existing premium data centers [3]. - This initiative is aligned with the broader development of China's digital economy, contributing to sustainable growth in the data center sector [3].