Amazon Data Services Hong Kong Limited will pay a minimum of HK$2.18 billion (US$277.88m) for two adjacent data center properties in Hong Kong's New Territories, under a sale agreement disclosed earlier this month by seller Grand Ming Group Holdings.

The properties are iTech Tower 3.1 and iTech Tower 3.2, located at 3 On Kui Street and 8 On Chuen Street in Fanling. The deal includes potential further payments of up to HK$265.8 million, lifting maximum gross consideration to HK$2.445 billion (US$311.66m). The contingent amounts depend on the scope of fit-out and construction works.

The transacting sellers are Regal Development Limited and Golden Ford Limited, both Grand Ming subsidiaries. Closing is set for February 2027.

What is included in the sale?

The first phase of iTech Tower 3.1 was delivered in December 2025 and is already leased to Amazon. Fit-out work continues. Construction on iTech Tower 3.2 remains in progress.

Grand Ming's website describes the nine-story development as offering a combined 185,000 sq ft (17,185 sqm) with capacity for 1,000 racks. Land acquisition and construction work on the project began in 2022.

Why is Grand Ming selling the pair?

Grand Ming framed the disposal as a balance-sheet deleveraging exercise. The group carries sizeable debt liabilities requiring repayment, with the sale forming part of a package of measures the company says are needed to ensure its survival as a going concern.

"The disposal provides the group with an opportunity to sell the two properties in their entirety to a single purchaser and realise substantial cash proceeds that would enhance the Group's financial position while reducing its overall indebtedness, while reducing its exposure to financing costs and the risks of retaining and developing the properties," the company stated.

The seller also weighed splitting the assets or bundling them with other facilities. Grand Ming concluded that a single-buyer sale to Amazon "reduces the time, execution risk, and duplicated costs" of separate transactions, particularly because Amazon's consent would have been required to transfer iTech Tower 3.1 to a third party.

After closing on iTech Tower 3.1, Grand Ming will stop receiving rental income under the existing lease and colocation arrangements.

What is the prior bid history?

Private investment firm Bain Capital held earlier exclusivity on Grand Ming's in-development data centers at HK$2.15bn (US$276m). That exclusivity period expired in September without a binding agreement. Previously reported discussions with Actis likewise failed to produce a transaction.

What else does Grand Ming operate?

Established in 1995, Grand Ming is an investment holding company focused primarily on building construction, covering building design, additional and alteration works, and building service engineering.

The Hong Kong-listed group runs two additional data center properties: iTech Tower in Tsuen Wan, launched in 2008, and iTech Tower 2 in Kwai Chung, launched around 2012. The company has not confirmed whether those two facilities remain on the market.

What is Amazon's existing Hong Kong footprint?

Amazon launched an AWS cloud region in Hong Kong in April 2019 with three availability zones. The company has not commented on the Fanling acquisition.