SGX-listed Digital Core REIT to buy stake in Frankfurt, Dallas data centres

Number of acquisitions will depend if REIT pursues a fundraising.

Digital Core REIT, a pure-play data centre REIT listed in Singapore, has entered into an agreement to buy a 25% interest in a freehold data centre in Frankfurt, Germany for approximately US$558m.

The REIT is purchasing the interest from its sponsor Digital Rrealty, a real estate investment trust. 

Under the deal, Digital Core REIT has the option to acquire up to an 89.9% interest in the Frankfurt facility and a 90% interest in an institutional quality freehold data centre in Dallas, Texas, valued at US$199m at 100% share, subject to suitable market conditions.

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The number of data centres to be acquiredwill depend on whether Digital Core REIT will proceed through an equity fundraising, which it is kicking off to partially finance the proposed transaction.

If the equity fundraising does not occur, the REIT will then pursue a 100% debt-funded transaction to acquire a 25% interest in the Frankfurt facility and will not acquire any interest in the Dallas data centre.