Data centre owner and operator Digital Realty Trust Inc is mulling an initial public offering of a trust in Singapore, targeting to raise $300-400 million, Bloomberg reported.
The firm is working with advisers for the possible listing, which could come as soon as the end of the year, the report added. The investment vehicle’s portfolio could be valued at around $1 billion.
The listed entity, which may be structured as a real estate investment trust (REIT) or a business trust, will own about 10 global data centers. It would be the second tech-related listing in Singapore this year, following electronic maker Aztech Global Ltd’s S$297 million IPO in March.
The demand for data centre services has increased significantly since last year as the Covid-19 pandemic-induced curbs have accelerated digital adoption across the world.
Digital Realty provides a full spectrum of data centre, colocation and interconnection solutions to its customers. The New York Stock Exchange-listed company’s portfolio consists of 290 data centers in 47 cities across 24 countries.
In Singapore, Digital Realty has one data centre in Jurong and two in Loyang.
Ascendas REIT, Singapore’s largest listed owner of industrial and office property, had acquired 11 data centres across 5 key European cities from Digital Realty for S$904.6 million in March this year. The portfolio includes four properties in the UK, three in the Netherlands, three in France, and one in Switzerland.
Early last year, Digital Realty had sold a portfolio of 10 data centres in North America to Mapletree Investments and Mapletree Industrial Trust (MIT).
Mapletree Investments and MIT acquired the portfolio for a total purchase price of approximately $557 million. The 10 fully-leased properties are expected to generate 2020 cash net operating income of approximately $37 million, representing a 6.6% capitalisation rate.