Macquarie Korea Infrastructure Fund's 'Hanam Data Center' Emerges as a Bigger Value Driver Than Dividends, Becoming a KRW 1 Trillion Asset [fn Market Watch]

[Financial News]  The Hanam Data Center has emerged as a new driver of value growth for Macquarie Korea Infrastructure Fund (MKIF). Dividends are expected to decline in 2027 as existing assets such as roads and tunnels reach the end of their operations, while the Hanam Data Center, acquired in 2024, is valued at up to KRW 1.3 trillion. That is up to 42% above total investment costs, drawing attention to a revaluation of existing assets beyond the short-term dividend decline.
On the 2nd, Samsung Securities gave MKIF a Buy rating and a target price of KRW 11,300. This represents 15.9% upside from the previous day's closing price.
The key asset is the Hanam Data Center. Acquired in July 2024, the facility completed its mechanical, electrical and plumbing (MEP) construction in the middle of last year. Its utilization rate, currently around 50%, is expected to reach 100% in the second quarter of 2027.
Samsung Securities estimates the Hanam Data Center's 2027 rental income and earnings before interest, taxes, depreciation and amortization (EBITDA) at KRW 85 billion and KRW 56 billion, respectively. Applying a 5.0% capitalization rate, the average for data centers in the Seoul metropolitan area, puts its value at approximately KRW 1.1 trillion. Applying a 4.25% rate to reflect the scarcity of its master-lease structure raises the valuation to KRW 1.3 trillion. That represents a 20–42% increase over total investment costs.
MKIF, which traditionally secured tolls and dividends from infrastructure assets, is broadening its investment scope through data centers. The strategy also seeks a revaluation of assets as utilization rates rise.
In the short term, however, dividends are expected to moderate. BNCT's restructuring, the liquidation of Baekyang Tunnel and the 2027 expiration of the concession agreement for Sujeongsan Tunnel are all expected to weigh on payouts. Combined with the lack of new investments over the past 18 months, these factors led Samsung Securities to forecast a 2027 dividend of KRW 680 per share, down 2.8% from the previous year.
The turning point is expected to come in 2028. As senior loans on existing investment assets continue to be repaid, the capacity of individual assets to pay dividends is expected to increase. The Hanam Data Center will also have room to raise dividends after its senior loans are repaid.
There are also signs that new investments may resume. MKIF is reportedly considering the Jamsil MICE private investment project and additional data centers. Jamsil MICE is a hybrid asset that combines real estate with traditional privately financed infrastructure.
Lee Kyung-ja, a researcher at Samsung Securities, said, "Although a decline in dividends in 2027 is unavoidable, attention should be paid to the rise in the value of the Hanam Data Center. From 2028, the existing assets' capacity to pay dividends is expected to increase, and if new investments resume, asset-value growth will come back into focus."
She added, "Ultimately, MKIF's next investment catalysts will depend on the addition of new assets and the appreciation of existing ones. As it expands beyond dividend-oriented infrastructure centered on roads and tunnels into data centers and MICE, it is transforming into a portfolio that combines stable cash flows with asset-value growth."
[email protected] Kim Kyung-a Reporter