Digital Core REIT to Invests in Two Data Centre

News about Digital Core REIT

Digital Core REIT intends to invest in two data centres, one in Germany and the other in the USA. Two scenarios are being considered with different stakes:

The first would be to raise enough equity to finance the much larger deal of acquiring an 89.9 per cent interest in the Frankfurt facility and a 90 per cent interest in the Dallas data centre, with a total acquisition cost of US$700 million (S$993 million).

In the event the equity fund-raising is unsuccessful, Digital Core Reit will then only acquire a 25 per cent interest in the Frankfurt facility for US$146 million, which will be funded by debt.

The debt-funded transaction is expected to be approximately 2 per cent accretive to DPU, while the equity fund-raising scenario is expected to be approximately 3.1 per cent accretive.

Digital Core REIT
Price0.710 USD
NAV0.850 USD
Yield (2 quarters)5.80%
Gearing25.7%