Key Takeaways
- • Digital Core REIT is divesting US$315.9 million in North American data center assets (Toronto, Los Angeles, Northern Virginia) to Digital Realty, generating approximately US$316 million in gross proceeds and US$140 million in net proceeds after planned acquisitions.
- • The REIT will deploy US$176 million to establish its first Singapore presence via a 2.5% stake in Digital Loyang 2 (S$87 million / US$68 million) and significantly expand its Japan footprint by acquiring an additional 25% stake in Digital Osaka 3 (¥17.6 billion / US$108 million), increasing Japan ownership from 20% to 45%.
- • Of the net proceeds, Digital Core REIT plans to allocate US$117 million to debt reduction and up to US$20 million for unit repurchases, strategically rebalancing leverage while returning capital to unitholders.
- • The transaction reorients the REIT's geographic exposure from mature North American markets toward higher-growth Asia-Pacific data center demand, with Digital Loyang 2 offering 42,000 kW of critical IT load capacity near Singapore's Changi North Cable Landing Station.
- • As of June 2026, Digital Core REIT's portfolio spans the US, Canada, Germany, and Japan, with approximately 120 customers; the Singapore entry and Japan expansion positions the REIT to capture regional growth while maintaining diversified operations across four continents.
Summary
Digital Core REIT announced a strategic portfolio repositioning involving the sale of three North American data center assets and a corresponding redeployment of capital into Asia-Pacific markets. The Singapore-listed REIT, sponsored by Digital Realty, will divest its 90% interest in 371 Gough in Toronto to Digital Realty for C$180 million (US$127 million), its 90% interest in 200 N. Nash in Los Angeles for US$79 million, and a 39% stake in 8217 Linton Hall in Northern Virginia for US$110 million. Combined, these three divestitures are expected to generate approximately US$316 million in gross proceeds.
The transaction reflects a deliberate shift in capital allocation from mature North American markets toward higher-growth Asia-Pacific data center markets. Digital Core REIT will use a portion of the proceeds to enter Singapore for the first time, acquiring a 2.5% interest in Digital Loyang 2 from Digital Realty for S$87 million (US$68 million). The facility is a five-storey data center providing over 42,000 kW of critical IT load and is strategically positioned near Singapore's Changi North Cable Landing Station as part of the broader Digital Realty Loyang Campus. Simultaneously, the REIT will deepen its Japan presence by acquiring an additional 25% stake in Digital Osaka 3 for ¥17.6 billion (US$108 million), more than doubling its ownership from 20% to 45%.
After funding the Singapore and Japan acquisitions at a combined cost of US$176 million, Digital Core REIT will retain approximately US$140 million in net proceeds for debt reduction and shareholder returns. The REIT has committed US$117 million toward paying down debt, supporting balance sheet optimization, while allocating up to US$20 million toward open-market unit repurchases. This dual approach balances deleveraging with direct capital return to unitholders. As of June 2026, Digital Core REIT operates a diversified portfolio across the US, Canada, Germany, and Japan, serving approximately 120 customers. The strategic repositioning enhances exposure to Asia-Pacific data center markets while maintaining geographic diversification and addressing structural growth drivers in the region's digital infrastructure demand.
The transaction reflects a deliberate shift in capital allocation from mature North American markets toward higher-growth Asia-Pacific data center markets. Digital Core REIT will use a portion of the proceeds to enter Singapore for the first time, acquiring a 2.5% interest in Digital Loyang 2 from Digital Realty for S$87 million (US$68 million). The facility is a five-storey data center providing over 42,000 kW of critical IT load and is strategically positioned near Singapore's Changi North Cable Landing Station as part of the broader Digital Realty Loyang Campus. Simultaneously, the REIT will deepen its Japan presence by acquiring an additional 25% stake in Digital Osaka 3 for ¥17.6 billion (US$108 million), more than doubling its ownership from 20% to 45%.
After funding the Singapore and Japan acquisitions at a combined cost of US$176 million, Digital Core REIT will retain approximately US$140 million in net proceeds for debt reduction and shareholder returns. The REIT has committed US$117 million toward paying down debt, supporting balance sheet optimization, while allocating up to US$20 million toward open-market unit repurchases. This dual approach balances deleveraging with direct capital return to unitholders. As of June 2026, Digital Core REIT operates a diversified portfolio across the US, Canada, Germany, and Japan, serving approximately 120 customers. The strategic repositioning enhances exposure to Asia-Pacific data center markets while maintaining geographic diversification and addressing structural growth drivers in the region's digital infrastructure demand.
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