Key Takeaways
- • Digital Core REIT targets $600 million total capital raise via Singapore IPO, comprising $235 million from public offering at $0.88 per unit and $365 million from cornerstone investors, with Digital Realty committing $377 million in sponsor units for total gross proceeds of $977 million.
- • Listing positioned to rival Singapore's largest 2021 IPO, with Digital Core REIT scheduled to debut on Singapore Exchange on November 29, 2021, potentially surpassing Daiwa House Logistics Trust's $423 million public offering that closed the previous week.
- • Seed portfolio valued at $1.4 billion at a 4.25% capitalization rate by independent third-party appraiser, anchored by assets including 1500 Space Park Drive in Santa Clara, California, establishing the REIT as a pure-play global data centre vehicle.
- • Digital Realty leverages market position as world's largest data centre trust to differentiate Digital Core REIT as the only pure-play data centre Singapore REIT backed by a global best-in-class listed data centre owner and operator.
- • John Stewart leads Digital Core REIT Management as chief executive officer, managing the newly sponsored vehicle designed to capture demand for data centre infrastructure across Asia-Pacific markets.
Summary
Digital Realty has filed preliminary prospectus documentation for the Singapore IPO of Digital Core REIT, targeting a $600 million capital raise that positions the offering as one of the largest initial public offerings on the Singapore Exchange in 2021. The transaction comprises $235 million from a public offering priced at $0.88 per unit, combined with $365 million raised through cornerstone investor unit issuances. Digital Realty itself has committed $377 million toward sponsor units, bringing total gross proceeds to $977 million according to the prospectus filed with Singapore's Monetary Authority on November 22, 2021.
The IPO timing places Digital Core REIT in direct competition with recent Singapore listings, particularly Daiwa House Logistics Trust, which completed its public offering the preceding week and raised $423 million. Digital Core REIT is scheduled to commence trading on the Singapore Exchange on November 29, 2021. The offering's scale and market reception will determine whether it surpasses Daiwa House Logistics Trust as Singapore's largest IPO for the year. Daiwa House's offering achieved substantial subscription levels, with the international placement subscribed 4.5 times and the Singapore public offering subscribed 9.5 times.
The REIT's seed portfolio, valued at approximately $1.4 billion at a 4.25% capitalization rate by independent third-party appraisal, includes flagship assets such as 1500 Space Park Drive in Santa Clara, California. This initial portfolio provides immediate cash-generating capability upon listing. The REIT is structured as a pure-play data centre vehicle, distinguishing it as the only Singapore REIT in this category backed by Digital Realty, the world's largest global data centre trust. This sponsorship arrangement provides institutional investors with exposure to cloud and carrier-neutral data centre infrastructure through a Singapore-domiciled REIT framework, addressing growing regional demand for data centre assets underpinning cloud computing and digital infrastructure expansion across Asia-Pacific markets.
The IPO timing places Digital Core REIT in direct competition with recent Singapore listings, particularly Daiwa House Logistics Trust, which completed its public offering the preceding week and raised $423 million. Digital Core REIT is scheduled to commence trading on the Singapore Exchange on November 29, 2021. The offering's scale and market reception will determine whether it surpasses Daiwa House Logistics Trust as Singapore's largest IPO for the year. Daiwa House's offering achieved substantial subscription levels, with the international placement subscribed 4.5 times and the Singapore public offering subscribed 9.5 times.
The REIT's seed portfolio, valued at approximately $1.4 billion at a 4.25% capitalization rate by independent third-party appraisal, includes flagship assets such as 1500 Space Park Drive in Santa Clara, California. This initial portfolio provides immediate cash-generating capability upon listing. The REIT is structured as a pure-play data centre vehicle, distinguishing it as the only Singapore REIT in this category backed by Digital Realty, the world's largest global data centre trust. This sponsorship arrangement provides institutional investors with exposure to cloud and carrier-neutral data centre infrastructure through a Singapore-domiciled REIT framework, addressing growing regional demand for data centre assets underpinning cloud computing and digital infrastructure expansion across Asia-Pacific markets.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.