U.S. data center real estate investment trust Digital Realty Trust Inc. filed a preliminary prospectus for the IPO of Digital Core REIT on the Singapore Exchange.
The offering comes with the issuance of 267,034,000 units at a price of 88 cents apiece for subscription, consisting of 253,682,000 units that will be offered to investors outside the U.S. under a placement tranche and 13,352,000 units that will be on public offer in Singapore. A 30-day overallotment option was granted to joint bookrunners to acquire an additional 53,406,000 units.
Digital CR Singapore Holding LLC, a wholly owned subsidiary of the REIT, will subscribe for 428,806,000 units. The cornerstone investors agreed to subscribe for an aggregate of 414,785,000 units of the new entity.
The cornerstone investors are Aew Asia Pte. Ltd., Affin Hwang Asset Mgmt Bhd., AIA Investment Management Pvt. Ltd., AMP Capital Investors Ltd., B&I Capital AG, BlackRock Inc., Cohen & Steers Asia Ltd., DBS Bank Ltd., DWS Investments Australia Ltd., Eastspring Investments (Singapore) Ltd., Fidelity Investments Management (Hong Kong) Ltd., Fullerton Fund Management Co. Ltd., Ghisallo Master Fund LP, Jane Street Financial Ltd., JPMorgan Asset Management (UK) Ltd., Kasikorn Asset Management Co. Ltd., Lion Global Investors Ltd., Nikko Asset Management Asia Ltd., Principal Global Investors (Singapore) Ltd., Resolution Capital Ltd., Schonfeld IR Master Fund Pte. Ltd., Schonfeld Global Master Fund LP, Stichting Depositary APG Tactical Real Estate Pool, Segantii Asia-Pacific Equity Multi-Strategy Fund, TMB Asset Management Co. Ltd. and Value Partners Hong Kong Ltd.
The REIT plans to raise approximately US$977 million in gross proceeds from the offering. The total cash proceeds and US$350 million drawn from the loan facilities will be used for the payment of the initial portfolio, transaction costs incurred in the offering and the debt financing and for working capital.
There will be an aggregate of 1,125,357,387 outstanding units upon completion of the offering.
The IPO portfolio includes 10 properties in the U.S. and Canada spanning 1.2 million in net rentable square feet as of June 30.
Digital Realty plans to coinvest in 10% of all Digital Core's future acquisitions. Digital Core has been granted the right of first refusal to a potential pipeline of more than US$15 billion of existing and under-construction data centers.
BofA Securities, Citigroup Global Markets Singapore Pte. Ltd. and DBS Bank Ltd. are joint issue managers, global coordinators, bookrunners and underwriters for the offering.
