Digital Core REIT files IPO, adding to year end listing jump

The Edge Singapore
The Edge Singapore 11/22/2021 03:52 PM GMT+08  • 3 min read
Digital Core REIT files IPO, adding to year end listing jump
It will have an initial portfolio of 10 freehold data centres in US and Canada with an appraised value of US$1.4 billion.
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The year end IPO rush has picked up with yet another IPO filed. On Nov 22, Digital Core REIT, which owns a portfolio of data centres, filed to go public at an indicative price of 88 US cents per unit. With a total of some 267 million shares to be sold, this issue is likely to be raising around US$235 million ($320 million).

See: Briefs: Digital Realty mulls US$300 mil Singapore trust IPO, Grab postpones merger with US SPAC

This REIT’s sponsor is Digital Realty, a leading data centre developer and operator. Digital Core REIT will be the exclusive S-REIT vehicle sponsored by Digital Realty.

It will have an initial portfolio of 10 freehold data centres in US and Canada with an appraised value of US$1.4 billion.

The REIT is projecting a distribution yield of 4.75% for forecast year 2022 and DPU growth of 5.26% from forecast year 2022 to projection year 2023.

As at listing date, the REIT’s gearing is around 27%, which is below its peers. At this level, it will have indicative debt headroom of US$160 million, US$424 million and US$596 million at gearing levels of 35%, 45% and 50% respectively to fund further investments.

See also: F&B player YKGI to raise $16.6 mil in IPO at 20 cents per share

For more stories about where the money flows, click here for our Capital section

The sponsor plans to co-invest future assets by taking a 10% stake and Digital Core REIT the remaining 90%.

The Cornerstone Tranche of US$365 million or 414.8 million units comprises 60.8% of the total IPO Size. There are 26 cornerstone investors. They are in alphabetical order:

See also: Temasek-backed data centre operator explores over US$1 billion IPO, sources say

1 AEW Asia Pte. Ltd.

2 Affin Hwang Asset Management Berhad

3 AIA Investment Management Private Limited

4 AMP Capital Investors Limited

5 B&I Capital AG

6 Blackrock, Inc.

7 Cohen & Steers Asia Limited

For more stories about where money flows, click here for Capital Section

8 DBS Bank Ltd.

9 DBS Bank Ltd. (on behalf of certain wealth management clients)

10 DWS Investments Australia Limited

11 Eastspring Investments (Singapore) Limited (in its capacity as investment manager for and on behalf of the investment accounts)

12 FIL Investment Management (Hong Kong) Limited

13 Fullerton Fund Management Company Ltd

14 Ghisallo Master Fund LP

15 Jane Street Financial Limited

16 JPMorgan Asset Management (UK) Limited (for and on behalf of its clients)

17 Kasikorn Asset Management Company Limited

18 Lion Global Investors Limited

19 Nikko Asset Management Asia Limited

20 Principal Global Investors (Singapore) Limited

21 Resolution Capital Limited

22 Schonfeld IR Master Fund Pte. Ltd. and Schonfeld Global Master Fund LP

23 Stichting Depositary APG Tactical Real Estate Pool, As Depositary Of APG Tactical Real Estate Pool

24 The Segantii Asia-Pacific Equity Multi-Strategy Fund

25 TMB Asset Management Company Limited

26 Value Partners Hong Kong Limited

Digital Core REIT's market cap at IPO is expected to be around US$990.3 million.

Photo by Lars Kienle on Unsplash

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