Digital Core Reit in US$315.9 million asset sale to fund Singapore, Osaka expansion
It will make its Singapore entry by acquiring a 2.5% interest in Digital Loyang 2 for S$87.4 million
Digital Core Reit plans to sell three North American properties for a combined US$315.9 million to fund its expansion into Asia-Pacific. The proceeds from the sales will be used to acquire a small stake in Singapore's Digital Loyang 2 and increase its ownership of Osaka's Digital Osaka 3 data centre. The transaction will make the Reit a 22% shareholder in the Asia-Pacific region, doubling its presence in the area.
CEO John Stewart emphasized that this is a pivotal step in the company's strategy to expand in the Asia-Pacific region. The transaction is expected to be accretive to the Reit’s distribution per unit and will reduce its aggregate leverage by 290 basis points to 36.3%.
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