Data centre operator Digital Realty mulls Singapore trust IPO: Report

Photo by Taylor Vick on Unsplash

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. 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.