AirTrunk, an Australia-based data center operator owned by Blackstone, is in talks with banks to borrow about S$2 billion (US$1.58 billion).

The loan would help finance a Singapore listing of a real estate investment trust backed by its assets, according to people familiar with the matter.

The REIT would likely use the loan to buy assets from AirTrunk and refinance existing debt. AirTrunk asked lenders to consider several debt tranches in Singapore dollars and yen, with maturities of three to seven years.

The initial public offering could raise about US$1.5 billion. Blackstone agreed to acquire AirTrunk in an A$24 billion (US$17.3 billion) deal, and the company operates data centers across Asia-Pacific, including Singapore.

The proposed listing would test investor demand for data center financing in Asia, where banks are becoming more selective, and lending to the sector has reached nearly US$29 billion since the start of last year, according to compiled data.

🔗 Source: Bloomberg

Recent AirTrunk developments