Digital Core REIT plans to raise $100m through private placement

The REIT will use 75% of the proceeds for future potential acquisitions in Japan and Frankfurt, Germany.

Digital Core REIT has proposed a private placement to raise gross proceeds of no less than $100m.

The REIT plans to price the private placement between $0.8100 (US$0.6000) and $0.8400 (US$0.6250) per new unit, representing a discount of about 8.8% and 5%, respectively, to the volume weighted average price (VWAP) of $0.88 (US$0.6579) per unit on the preceding market day.

Citigroup Global Markets Singapore, DBS Bank Ltd., Merrill Lynch (Singapore), BNP Paribas (Singapore), and the United Overseas Bank will serve as the joint bookrunners and underwriters of the private placement.

The REIT plans to use 75% of the proceeds for future potential acquisitions in Japan and Frankfurt, Germany.

The REIT will use 22.5% of the proceeds to repay debt and the remaining 2.5% to pay fees and expenses related to the private placement.

The new units under the private placement will be made available to eligible institutional, accredited, and other investors.