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.