Key Takeaways
- • Digital Realty launched a $977 million USD Singapore REIT (Digital Core REIT) via IPO on the Singapore Exchange, with total enterprise value of $1.34 billion USD including drawn debt upon completion.
- • Digital Core REIT's initial portfolio comprises 10 fully leased freehold data centers across Northern Virginia, Silicon Valley, Los Angeles, and Toronto, representing 60+ megawatts of critical IT load and 1.2 million net rentable square feet.
- • Digital Realty will retain a 39.4% ownership stake ($390 million USD) representing 428 million units, with the remaining 60.6% ($600 million USD) raised from cornerstone investors and public/institutional investors at $0.88 per unit.
- • The REIT's tenant roster includes hyperscale and enterprise operators: Microsoft, Facebook, Amazon Web Services (AWS), IBM, Cyxtera, and Sungard Availability Services, reducing Digital Realty's exposure to non-investment grade tenant Cyxtera.
- • The IPO marks Digital Realty's strategic rationalization of its core North American data center portfolio, divesting stabilized assets while maintaining significant exposure through majority unitholder status.
Summary
Digital Realty announced its intention to raise $977 million USD in gross proceeds through the initial public offering of Digital Core REIT on the Singapore Exchange. The newly created Singapore REIT will focus on stabilized, income-producing data centers in the United States and Canada. Including drawn debt, Digital Core REIT will have an enterprise value of $1.34 billion USD upon IPO completion, representing a significant capital raise for core Asia-Pacific and institutional investor bases seeking exposure to North American data center infrastructure.
The REIT's initial portfolio consists of 10 freehold data centers that are 100% leased across four key markets: Northern Virginia, Silicon Valley, Los Angeles, and Toronto. Combined, these facilities represent over 60 megawatts of critical IT load across 1.2 million net rentable square feet. This geographic and operational diversification positions Digital Core REIT to capture demand from both enterprise and hyperscale customers across major North American tech hubs and financial centers.
The tenant base reflects institutional-grade occupancy quality. Primary lessees include Microsoft, Facebook, Amazon Web Services (AWS), IBM, Sungard Availability Services, and Cyxtera. By launching this REIT, Digital Realty is strategically reducing its exposure to Cyxtera, a non-investment grade tenant, following its earlier divestiture of the Prudential data center joint venture. This rationalization allows Digital Realty to monetize stabilized assets while maintaining operational upside through continued management and significant ownership retention.
Digital Realty will be Digital Core REIT's largest unitholder, retaining a 39.4% ownership stake valued at $390 million USD, equivalent to 428 million units. The IPO will issue 1.11 billion units at $0.88 per unit. The remaining 60.6% ownership interest ($600 million USD) will be distributed among cornerstone investors and public and institutional investors, providing liquidity and diversified capital support for the platform. This structure positions Digital Realty as the anchor institutional investor while opening the asset to Singapore Exchange-listed REIT capital and Asia-Pacific institutional demand for North American data center income.
The REIT's initial portfolio consists of 10 freehold data centers that are 100% leased across four key markets: Northern Virginia, Silicon Valley, Los Angeles, and Toronto. Combined, these facilities represent over 60 megawatts of critical IT load across 1.2 million net rentable square feet. This geographic and operational diversification positions Digital Core REIT to capture demand from both enterprise and hyperscale customers across major North American tech hubs and financial centers.
The tenant base reflects institutional-grade occupancy quality. Primary lessees include Microsoft, Facebook, Amazon Web Services (AWS), IBM, Sungard Availability Services, and Cyxtera. By launching this REIT, Digital Realty is strategically reducing its exposure to Cyxtera, a non-investment grade tenant, following its earlier divestiture of the Prudential data center joint venture. This rationalization allows Digital Realty to monetize stabilized assets while maintaining operational upside through continued management and significant ownership retention.
Digital Realty will be Digital Core REIT's largest unitholder, retaining a 39.4% ownership stake valued at $390 million USD, equivalent to 428 million units. The IPO will issue 1.11 billion units at $0.88 per unit. The remaining 60.6% ownership interest ($600 million USD) will be distributed among cornerstone investors and public and institutional investors, providing liquidity and diversified capital support for the platform. This structure positions Digital Realty as the anchor institutional investor while opening the asset to Singapore Exchange-listed REIT capital and Asia-Pacific institutional demand for North American data center income.
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.