NTT DC Reit launches biggest IPO of an S-Reit in over a decade, aims to raise US$773 million

[SINGAPORE] The manager of NTT DC Reit said on Monday (Jul 7) that the real estate investment trust has launched its initial public offering (IPO) with the aim of raising gross proceeds of US$773 million.

This will be the largest IPO of a Singapore Reit in over a decade, with NTT DC Reit listing over a billion units on the mainboard of the Singapore bourse.

There are nearly 600 million units on offer at US$1 per unit in its international placement, and 30 million units at S$1.276 per unit for the Singapore public offer.

Separate from the offering, sponsor NTT Limited will subscribe to over 257 million units, representing 25 per cent of all units. 

The second-largest investor is GIC, which is subscribing to more than 100 million units that make up 9.8 per cent of the total units in issue after the offering. It will be a substantial unitholder immediately upon listing.

The sovereign wealth fund is part of a group of cornerstone investors that will subscribe to over 172 million units in total, representing 16.8 per cent of all units.

The other cornerstone investors are AM Squared, Ghisallo Master Fund, Hazelview Securities, Pinpoint Asset Management (Singapore), Viridian Asset Management and UBS (acting through its Singapore Branch, on behalf of wealth management customers).

The Singapore public offer opens at 9 pm on Monday, and closes at 12 pm on Thursday. The counter is expected to start trading at 2 pm on Jul 14.

Its forecasted annualised distribution yield is 7.50 per cent for its 9M FY2025 period (Jul 1, 2025 to Mar 31, 2026).

The IPO portfolio reportedly has an appraised value of around US$1.6 billion, with a design infrastructure technology load of about 90.7 megawatts. All assets in the portfolio are freehold, except for the Singapore asset, which is on leasehold land expiring in 2070.

It comprises six carrier-neutral, Tier III or Tier III-equivalent assets with stringent operational and technical specifications that serve customers’ high-value workloads, said the manager.

The portfolio is diversified across Northern Virginia and Northern California in the US, Vienna in Austria and Singapore, with a mix of hyperscale and colocation customer contracts.

Northern Virginia is the largest data centre market in the world, while Northern California is ranked eighth in the US. At the same time, Vienna is a fast-growing data centre market in the European region, and Singapore is the second-largest market in the Asia-Pacific.