BEIJING, Nov. 28,
2024 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET)
("VNET" or the "Company"), a leading carrier- and cloud-neutral
internet data center services provider in China, today announced that the Company has
executed a definitive agreement (the "Agreement") with Dajia
Investment Holding Company Ltd. ("Dajia"), a wholly owned
subsidiary of Dajia Insurance Group under which both parties
will jointly form a pre-REITs fund (the "Fund") to invest in
hyperscale data centers in mainland China. This initiative marks a significant
milestone for China's data center
sector, reflecting the growing trend among domestic institutional
investors to channel investments into new infrastructure projects
in mainland China.
Pursuant to the Agreement, the underlying assets (the "Assets")
for the Fund's initial investment are the first and second phases
of VNET's Taicang IDC Campus, which currently has a total IT
capacity of approximately 210MW and an estimated value of
RMB5.74 billion, reflecting an
implied post-closing valuation of approximately 10.1x EV/EBITDA.
VNET will retain a 51% equity interest in the Assets through the
Fund, while Dajia will acquire and hold the remaining 49%
interest. VNET will consolidate the financial results of the Fund
and its underlying assets into VNET's financial statements for
financial reporting purposes and will continue to operate the
Assets to ensure stable, premium IDC services for its
customers.
Josh Sheng Chen, Founder,
Executive Chairperson and interim Chief Executive Officer of VNET,
commented, "We are thrilled to announce this transaction. It
demonstrates our prowess in effectively managing capital and asset
operating cycles, bolstering our capital sources with long-term
investors while further enhancing our balance sheet efficiency. We
will continue to pursue innovative financing structures and explore
exits for our existing premium data centers, building a healthy,
sustainable capital and asset cycle that propels our long-term
growth while contributing to China's high quality digital economy
development."
About VNET
VNET Group, Inc. is a leading carrier- and cloud-neutral
internet data center services provider in China. VNET provides hosting and related
services, including IDC services, cloud services, and business VPN
services to improve the reliability, security, and speed of its
customers' internet infrastructure. Customers may locate their
servers and equipment in VNET's data centers and connect to
China's internet backbone. VNET
operates in more than 30 cities throughout China, servicing a diversified and loyal base
of over 7,000 hosting and related enterprise customers that span
numerous industries ranging from internet companies to government
entities and blue-chip enterprises to small- to mid-sized
enterprises.
About Dajia Investment Holding Company Ltd.
Dajia Investment Holding Company Ltd. is an alternative asset
investment management company wholly owned by Dajia Insurance
Group. It invests in high-quality assets with growth potential
across China, focusing on sectors
such as clean energies, modern logistics, data centers, industrial
parks, rental housing, and retail infrastructures.
Safe Harbor Statement
This announcement contains forward-looking statements. These
forward-looking statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"target," "believes," "estimates" and similar statements. Among
other things, quotations from management in this announcement as
well as VNET's strategic and operational plans, including the plan
to operate the Assets under the pre-REITs project, contain
forward-looking statements. VNET may also make written or oral
forward-looking statements in its reports filed with, or furnished
to, the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about VNET's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: VNET's goals and strategies; VNET's liquidity
conditions; VNET's expansion plans; the expected growth of the data
center services market; expectations regarding demand for, and
market acceptance of, VNET's services; VNET's expectations
regarding keeping and strengthening its relationships with
customers; VNET's plans to invest in research and development to
enhance its solution and service offerings; and general economic
and business conditions in the regions where VNET provides
solutions and services. Further information regarding these and
other risks is included in VNET's reports filed with, or furnished
to, the U.S. Securities and Exchange Commission. All information
provided in this press release is as of the date of this press
release, and VNET undertakes no duty to update such information,
except as required under applicable law.
Investor Relations Contact:
Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com
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SOURCE VNET Group, Inc.