Digital Core REIT
Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO. The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.The IPO portfolio comprises 10 freehold data centres in the U.S. and Canada with an aggregate appraised valuation of US$1.4bn. The IPO portfolio totals 1.2m NRSF as of Jun 2021 and is 100% leased. The weighted-average remaining lease term is over 6 years. Most of the leases have a built in rental escalation, as well.
Although, it does come with some peculiarities, such as no explanation for why a US REIT is undertaking a Singapore REIT listing with US assets instead of Asian assets. Or for why an acquisition fee is being paid to the manager for the initial IPO portfolio.
As compared to its other Singapore listed peers, DCREIT will be the smallest of the lot in size but also has the lowest gearing and the highest occupancy along with lowest lease expiry over the next few years.
In this note, we will run the deal through our ECM framework.
Digital Realty Trust is a real estate investment trust. The company is a global provider of data center, colocation and interconnection solutions for customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. The company's Operating Partnership, Digital Realty Trust, L.P., is the entity through which the company conducts its business of owning, acquiring, developing and operating data centers. The company's portfolio of data centers provides available environments for the exchange, processing and storage of electronic information.
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.