Digital Core Reit proposes US$315.9 million North America asset sale, enters Singapore
It will make its entry into the Republic by acquiring a 2.5% interest in Digital Loyang 2 for S$87.4 million
Digital Core Reit is proposing a major portfolio revamp to establish a presence in Singapore and strengthen its position in Japan. The proposal involves divesting mature North American assets and reinvesting proceeds into Asia-Pacific. The company will sell its 90% interest in Toronto's 371 Gough Road facility, a 39% stake in Los Angeles' North Nash Street co-location facility, and a 39% interest in Northern Virginia's 8217 Linton Hall Road.
In Asia-Pacific, Digital Core Reit will acquire a 2.5% interest in Singapore's Digital Loyang 2 and expand its ownership in Osaka's freehold Osaka Data Centre. The divestment proceedings will be used to redeploy capital into Asia-Pacific, reduce leverage, and fund unit buybacks. The proposed changes are expected to be accretive to the distribution per unit (DPU) and decrease aggregate leverage by roughly 290 basis points.
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