Singapore Data Center Startup AirTrunk Secures $621M Funding

AirTrunk, a specialist in hyperscale data centres, has successfully completed an AU$850 million ($621 million) financing process to fund a major expansion of its Australian data centres in Sydney and Melbourne, and across key Asia-Pacific markets.

The expansion has been driven by strong customer demand for hyperscale data centre solutions, the company said.

Deutsche Bank is the lead arranger, underwriter and sole bookrunner for the new senior secured debt facilities. The financing will be the largest by a data centre company in Australia.

AirTrunk founder and CEO, Robin Khuda, and shareholders, Goldman Sachs and TSSP, have also contributed new capital to support the expansion plans.

“We saw a substantial amount of global interest in AirTrunk throughout the process, and are delighted to complete this financing arrangement with Deutsche Bank. Together with the new capital recently contributed by our shareholders, the new funds put us in a strong position to meet the growing demand from large cloud, content and enterprise customers in the Asia-Pacific region,” Khuda said.

AirTrunk opened its two Australian data centres last year – AirTrunk Sydney in September and AirTrunk Melbourne in November. The two facilities are set to be the largest independent data centres in the Asia-Pacific region when completed at 90 megawatts and 84 megawatts respectively.

“AirTrunk continues to pursue its ambition to be the leader in hyperscale data centres for the region. The expansion in Australia will establish AirTrunk as the largest data centre operator in Australia by deployed capacity and we continue to pursue aggressive growth opportunities across the Asia-Pacific region,” added Khuda.

Also Read: Singapore: TPG Capital Asia Acquires Quest Laboratories

AirTrunk is a hyperscale data centre specialist creating a platform for cloud, content and large enterprise customers across the Asia-Pacific region. The company develops and operates data centre campuses with industry leading reliability, technology innovation and energy efficiency. – AsiaPEVC.com

Singapore: TPG Capital Asia Acquires Quest Laboratories

TPG Capital Asia, the Asian investment platform of global alternative asset firm TPG, announced that it has completed its acquisition of Quest Laboratories Pte Ltd, one of the leading independent, private medical laboratories in Singapore.

The acquisition forms part of TPG’s A$279 million (S$279 million) purchase of Healthscope Limited’s Asian pathology laboratories in Singapore, Malaysia and Vietnam. In Singapore and Vietnam, these laboratories operate under the brand “Quest Laboratories”, while in Malaysia, they are known as “Gribbles Pathology”.

“We are pleased to complete the acquisition of this premier laboratory-of-choice to private healthcare practitioners and patients in Singapore. The healthcare sector is one of TPG’s key investment areas and we look forward to leveraging Quest’s core competencies to grow our pathology business across Southeast Asia,” Richard Seow, TPG Senior Advisor and incoming Chairman of Quest Laboratories, said.

Quest Laboratories is the first full-service private laboratory to be dually accredited by the College of American Pathologists and the Singapore Accreditation Council.

The company serves specialist doctors, general practitioners, as well as integrated healthcare providers with a full suite of laboratory tests.

Its main laboratory in Singapore, which spans over 25,000 square feet, has the largest fully automated sample management system in Singapore with the capability to provide consistently accurate and reliable results.

Quest’s satellite laboratories located in Paragon Medical, Thomson Medical Centre and Novena Medical service the key private hospitals, medical centres and specialist clinics.

In Vietnam, Quest Laboratories operates two laboratories in Ho Chi Minh City in a women’s and children’s private hospital and in the central urban district.

TPG’s investment in Quest Laboratories builds on the firm’s strong healthcare foundation in Asia and across the globe. It is also a result of the firm’s global interest in the sector, accompanied by deep expertise and geographical exposure, having invested across a range of businesses—from pharmaceutical companies to healthcare services.

Also Read: Singapore: Cloud Inventory Firm TradeGecko Secures $10M

Investments in Asia have included Manipal Hospitals in India, United Family Healthcare in China, Novotech and Healthscope in Australia, and the Jetanin Institute for Assisted Reproduction in Thailand.

TPG’s latest investment in Quest Laboratories comes alongside its investments in businesses that are headquartered out of Singapore including PropertyGuru, TE Asia Healthcare, and Parkway Holdings (now part of IHH Healthcare). – AsiaPEVC.com

Australia: Wesfarmers Selling Kmart Tyre and Auto Service to Continental

Australia-listed conglomerate Wesfarmers today announced it has agreed to sell its Kmart Tyre and Auto Service (KTAS) business to Continental AG for $350 million.

On successful completion of the transaction, Wesfarmers estimates it will report a pre-tax profit on sale of approximately $270 million to $275 million, subject to completion adjustments.

The sale is subject to certain consents and approvals including from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

KTAS is one of Australia’s largest tyre, automotive service, and repair retailers. The business has 258 stores in Australia with over 1,200 employees. It is also the largest single employer of apprentice motor mechanics in Australia.

Continental, based in Germany, will use the KTAS name and logo for a transitional period following the sale. Its five divisions in 2017 generated sales of €44 billion and it currently employs more than 243,000 people in 60 countries.

Continental’s Tire division is a technology leader in tyre production and offers a broad product range for passenger cars, commercial vehicles, and two-wheelers.

Its product portfolio also includes fleet applications, as well as digital management systems for commercial vehicle tyres.

Wesfarmers Managing Director Rob Scott said the agreement to sell KTAS crystallises value for shareholders from the business turnaround since it was acquired as part of the Coles Group in 2007.

“We believe that the divestment is in the best interests of Wesfarmers’ shareholders, while giving the employees and customers of KTAS the opportunity to join a highly complementary business in Continental. Continental’s automotive industry expertise will further strengthen the business’ customer offering,” Scott said.

Subject to satisfying conditions precedent, the divestment of KTAS is expected to complete in the first quarter of the 2019 financial year.

Last week, Wesfarmers also announced it has agreed to sell its 40 per cent interest in the Bengalla Joint Venture to its joint venture partner New Hope Corporation (ASX:NHC) for $860 million.

On successful completion of the transaction, Wesfarmers expects to report a pre-tax profit on sale of approximately $670 million to $680 million subject to completion adjustments.

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Bengalla is currently owned 40 per cent by Wesfarmers, 40 per cent by New Hope, 10 per cent by Taipower and 10 per cent by Mitsui. The transaction is subject to regulatory approval and pre-emption rights under the Bengalla Joint Venture Deed. The sale of the interest in the Bengalla Joint Venture is expected to close in the fourth quarter of 2018. – AsiaPEVC.com

BlackRock Real Estate Acquires Solar Portfolio in Taiwan

BlackRock Real Assets has entered into an agreement to acquire the entire equity interest in a 59MWac / 70MWdc solar portfolio comprising 28 projects in Taiwan from J&V Energy Technology Co (J&V Energy), a solar energy producer headquartered in Taipei.

The assets were acquired through a private fund managed by BlackRock Real Assets that invests in wind and solar assets globally. The transaction marks the team’s first renewables investment in Taiwan, and first-ever floating solar acquisition.

The portfolio consists of operating and construction projects expected to be fully operational in 2019, with New Green Power (NGP), a leading solar developer and operator, continuing to provide engineering, procurement and construction (EPC) as well as long-term operational and maintenance services.

The portfolio offers stable and long-term income for investors on the back of securing attractive 20-year feed-in-tariff (FIT) contracts with an investment grade off-taker.

The Taiwanese authorities are targeting an installed base of 25GW of renewable power by 2025 and solar technology will play a key role in shaping Taiwan’s energy future.
“We are delighted to partner with J&V Energy and NGP to make our first renewables investment in the Taiwan market, on behalf of our clients. This transaction demonstrates our commitment to the Asia Pacific region, a strategic priority for our US$5 billion global investment platform,” said Charlie Reid, Portfolio Manager of the BlackRock Renewable Power investment team.

Leo Seewald, Head of BlackRock Taiwan, said the acquisition adds renewable power capabilities to the company’s local investment platform and strengthen BlackRock’s presence in Taiwan, while supporting the market’s transition to renewable energy.

BlackRock Real Assets has invested in more than 190 solar and wind projects over the last few years, representing close to 6.6 gigawatts of capacity, able to generate enough clean energy to power more than 4.5 million homes per annum.

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“The agreements with BlackRock and New Green Power are an important step in our portfolio strategy and demonstrate the growing maturity of Taiwan’s secondary market for renewables. The arrangement frees up capital for further investments and enables J&V Energy to continue to originate additional opportunities to create long term value for our shareholders,” Kai Tan, Chief Executive Officer of J&V Energy, said.

IFC To Invest $100m in Indonesia’s Subang Industrial Estate

The International Financial Corporation (IFC), a member of the World Bank Group, is providing $100 million in loan package to Indonesia’s Surya Semesta Internusa (SSIA), which is developing a new 2,000-hectare green state of the art industrial estate in Subang, West Java.

The development is set to provide over 34,000 jobs, according to an IFC statement.

Located along the Trans Java toll road network, the Subang industrial estate will provide modern infrastructure for both international and domestic manufacturing firms.

It is strategically positioned for access to the newly opened Kertajati International Airport and the Patimban Deep Sea Port currently being developed in Subang, a national strategic project.

SSIA believes that this first investment by IFC in the company will create markets that open up greater opportunities for the future of its new Subang City of Industry project.

“We are extremely pleased to partner with IFC for the development of the new Subang industrial estate,” said SSIA’s President Director, Johannes Suriadjaja. “In addition to providing long term capital, we believe our collaboration with IFC will help set a new sustainable green standard for the sector through the use of the latest technology, and spur other industrial estate developers to follow a similar path.”

In formally signing the deal at a ceremony in Bali, IFC CEO Philippe Le Houérou said IFC also planned to boost investments in the country’s tourism sector, in support of the Government of Indonesia’s efforts to accelerate tourism development in key destinations across the country.

“The tourism sector offers tremendous opportunity for the future growth of Indonesia,” he said. “For the country to unlock its true potential, tourism development must move increasingly beyond Bali to other destinations.”

Subang City of Industry is envisioned as a model for tomorrow’s industrial estate by becoming the first smart and sustainable industrial estate for customers and society in Indonesia. This is in line with SSIA’s vision for Building a Better Indonesia.

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A key feature of the new Subang estate will be its innovative green features, such as electric transportation, solar panels and water and power efficient technologies.

It will be the first industrial estate to promote IFC’s green buildings standards, with both SSIA and its manufacturing tenants aiming to achieve at least 20 percent savings in energy, water, and materials compared to other similar developments.

Keppel Capital To Launch A$1bn Wholesale Property Fund in Australia

Singapore’s Keppel Capital Ventures has partnered with Vicinity Centres (Vicinity), a retail property group listed on the Australian Securities Exchange, to establish a new private fund in Australia.

The proposed fund intends to invest in an initial A$1 billion ($740 million) portfolio of Australian retail properties currently owned by Vicinity. The MOU is subject to due diligence, definitive documentation and final board approvals of both parties.

Keppel Capital Ventures is a wholly-owned subsidiary of Keppel Capital Holdings, the asset management arm of Keppel Corporation Limited.

The parties intend to manage the proposed fund through a joint venture where Keppel Capital and Vicinity will each hold a 50 per cent stake.

“Vicinity is expected to initially inject approximately A$1 billion of retail assets located across five Australian states into the proposed fund, and continue to provide property and development services for these assets,” Keppel said in a disclosure to the Singapore Exchange Monday.

Each party is expected to initially hold up to a 10% equity interest in the proposed fund, which is targeted to close by the end of the first quarter in 2019.

The ongoing investment strategy of the proposed fund will be to own, acquire and grow a diversified portfolio of Australian retail assets with stable yields and potential long-term capital growth, underpinned by high occupancy rates, balanced lease expires and a diversified tenant base predominantly focused on non-discretionary spending.

“The proposed fund will benefit from Keppel Capital’s extensive investor network and Vicinity’s strong capabilities in the retail sector in Australia,” Keppel said.

As one of the largest retail property managers listed on the Australian Securities Exchange, Vicinity has a fully integrated asset management platform and A$26 billion in retail assets under management across 81 shopping centres.

“The proposed fund, which will be Keppel Capital’s first retail-focused real estate fund, will expand our track record in Australian real estate investments beyond office developments to include retail properties,” said Keppel capital CEO Christina Tan.

Also Read: Singapore: Keppel Offshore & Marine Secures $51m Contract

For Vicinity CEO and Managing Director Grant Kelly, global investors view the Australian retail property market favourably, with its transparency, stable and growing economy, and strong population growth particularly attractive.

“Keppel Capital is an ideal partner for Vicinity, with our aligned objectives of expanding our respective property funds platforms and delivering long-term sustainable growth for partners invested in those platforms,” he said.

Philippines: Cebu Pacific To Acquire Five Airbus A320neo

Listed Philippine carrier Cebu Pacific continues to ramp-up its fleet with the confirmed addition of five Airbus A320neo (new engine option) aircraft.

Deliveries of the aircraft will commence in the first half of 2019 and will be completed within the same year.

The five additional A320neo aircraft is on top of its order of two more A321ceo, 32 Airbus A321neo, and six ATR 72-600 aircraft, which are scheduled for delivery between 2018 and 2022. The additional aircraft will be used to support the carrier’s expansion plans.

“We see expansion opportunities in new markets, as well as pent-up demand in areas where we currently operate. The introduction of the first new generation, fuel-efficient A320neo aircraft to the Philippine market will help us to further strengthen our position in the Philippines and allow us to further pursue expansion of our international route network. From this year until 2022, we are adding an average of nine new aircraft per year to our fleet,” said Alexander Lao, Vice President for Commercial Planning of Cebu Pacific.

“With higher seat capacity and much greater fuel efficiency, the A320neo will enable us to fly further and more economically. It’s the perfect addition to our fleet, allowing us to offer even more compelling fares to more passengers.”

The single-aisle A320neo aircraft for Cebu Pacific will be equipped with the Pratt & Whitney PurePower PW1100G-JM geared turbofan, the aircraft has a maximum range of 6,300 kilometers but burns up to 20% less fuel.

Cebu Pacific will acquire the five aircraft via an Operating Lease Agreement signed with Avolon Aerospace Leasing Limited, one of the largest aircraft leasing companies in the world.

This is second lease agreement between Cebu Pacific and the Dublin-based Avolon following the placement of three Airbus A330-300 aircraft with the carrier.

Also Read: Philippines: Pilmico Acquires Singapore’s Gold Coin for $334m

Cebu Pacific has one of the youngest fleets in the world, with a total of 67 aircraft with an average age of 4.8 years.

The CEB fleet is comprised of 36 Airbus A320, five Airbus A321CEO (Current Engine Option), and eight Airbus A330; as well as a fleet of eight ATR 72-500 and ten ATR 72-600 aircraft, operated by subsidiary Cebgo.

Singapore: Cloud Inventory Firm TradeGecko Secures $10M

TradeGecko, a global SaaS inventory and order management platform for small-medium businesses (SMBs), today announced a Series B investment of $10 million, led by TNB Aura Fund 1 and Aura Venture Fund, with Perle Ventures, and 33 Capital participating in the round.

This increases the total capital invested to date to over USD 20M. The proceeds raised will be used to grow TradeGecko’s product suite, providing a seamless commerce platform to thousands of commerce brands, and expanding to empower more commerce businesses around the world.

“In terms of feature-density, user experience, and quality of integrations, TradeGecko is the best-in-class B2B software-as-a-service provider in the inventory and order management space”, said Vicknesh R Pillay, Managing Partner of TNB Ventures and TNB Aura Fund 1. “We are pleased to back this standout player.”

“We see a massive opportunity to provide the back-end systems of SMB commerce on a global scale”, said Cameron Priest, CEO of TradeGecko. “With the rapid growth of SMBs around the world, partnering with Aura enables us to leverage their market knowledge and extensive network. With the latest funding, we will continue to invest in solving our customers most challenging operational challenges.”

TradeGecko was built with the vision of empowering millions of entrepreneurs to build the business of their dreams by providing a back-end platform to run the entire business operations of a growing commerce brand.

With global HQ based in Singapore and North American HQ in Toronto, the company powers the operational back-ends of leading SMB commerce brands including memobottle, Dead Studios, Brooklyn Bicycle Company, Maui and Sons, and Paula’s Choice Skincare.

Also Read: Singapore VC Amasia Backs Skillshare’s $28m Series C

TradeGecko aims to free business owners from the operational complexity of running their business to spend more time building a brand their customers will love.

“The investment into TradeGecko is a great deal for our fund” commented Calvin Ng, Managing Director of Aura Group. “We are confident in the long-term prospects of the company and the team’s ability to continue executing strong and consistent growth of their revenues and unit economics.”

Singapore VC Amasia Backs Skillshare’s $28m Series C

New York-headquartered online learning portal Skillshare has raised $28 million in Series C funding round backed by Singapore and San Francisco-based venture capital firm Amasia.

The new round includes $20 million in equity funding as well as $8 million in venture debt. Union Square Ventures, who previously participated in Skillshare’s earlier funding rounds, led the equity portion of the financing. Also participating were Burda Principal Investments and Spero Ventures.

Skillshare said it will use the financing to accelerate growth and expand its learning ecosystem, which serves the growing independent workforce.

“This round comes at a time in our company’s history where we’re seeing a lot of momentum,” said Matt Cooper, CEO of Skillshare. “Over the last twelve months we’ve experienced greater than 100% revenue growth, much of which was driven by what we call the ‘Independent Class’”.

Currently, Skillshare’s platform boasts over 5 million users and over 20,000 classes taught by a network of 6,000 experts across dozens of fields.

“Skillshare’s subscription model and affordable price make its ever-growing catalog of classes broadly accessible,” said Albert Wenger, managing partner at Union Square Ventures. “That’s a powerful model as it keeps the price of marginal usage at zero, allowing members to try classes risk-free and explore new paths of learning across a wide number of disciplines. In that regard, it’s like a Netflix for learning”.

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Matt Cooper, CEO, Skillshare

Of late, that thriving online community has become increasingly global as well, the startup said. Asia, particularly, has shown huge potential, with paid members from the region growing by more than 400 per cent over the last eighteen months.

Skillshare raised its Series B round in May of 2016. To date, the company has raised a total of $42 million in equity financing.

SoftBank’s Vision Fund Leads $121m Funding in Camera Firm Light

Advanced computational imaging firm Light has secured $121 million in Series D funding led by SoftBank Vision Fund and backed by consumer camera giant Leica Cambera AG.

The latest funding round brings Light’s total amount raised from investors to date to $186 million. The SoftBank Vision Fund investment will be made in tranches, subject to certain conditions.

Light’s groundbreaking imaging platform enables machines to see like humans do, using sophisticated algorithms to combine images from multiple camera modules into a single high-quality image and enabling highly-accurate 3D depth extraction.

The company said the new funding will allow it expand the reach of its imaging platform beyond consumer photography and into security, robotic, automotive, aerial and industrial imaging applications.

Later this year, the first mobile phone incorporating Light’s technology will be available to consumers around the world. It will shatter the expectations of mobile photography.

“Light’s technology is a revelation, showing that several small, basic camera modules, combined with highly powerful software, can produce images that rival those produced by cameras costing and weighing orders of magnitude more,” said Dave Grannan, Light CEO and Co-founder.

Grannan added that the support of SoftBank Vision Fund as a strategic investor means “this technology will see more of the world sooner than we could have ever imagined”.

Light’s foundational technologies, including its Lux Capacitor camera control chip and its Polar Fusion Engine for multi-image processing, are licensed for use in applications like smartphones, security, automotive, robotics, drones, and more.

“Light’s highly accurate depth mapping can be used to create rich and complex environments for a wide-range of applications including augmented reality,” the company said in a statement.

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Akshay Naheta, Partner, SoftBank Investment Advisers, describes Light as a world leader in computational imaging.

“By replacing mechanical complexity with digital sophistication, they have been able to drastically reduce the size, weight, and cost of traditional cameras. This has paved the way for a whole new era of intelligent imaging applications,” Naheta said.