Japanese telecommunications firm NTT plans to raise around US$864 million through the initial public offering (IPO) of its data center real estate investment trust (REIT) on the Singapore Exchange.

This amount includes an overallotment option, according to a term sheet that initiates the bookbuilding process.

The NTT DC REIT includes six data center assets located in the United States, Austria, and Singapore, as stated in its preliminary prospectus.

The base offering is valued between US$772 million and US$812 million, while the overallotment option could add an additional US$51.5 million.

If fully exercised, the overallotment option would leave NTT with a 20% stake in the REIT.

The REIT’s market capitalization is estimated to reach up to US$1.08 billion.

Bookbuilding is scheduled to conclude on July 4, 2025, with the listing anticipated for July 14.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Data center REITs demonstrate resilience amid growing digital infrastructure demand

NTT’s planned $864 million REIT IPO fits within a rapidly expanding market segment that’s gaining investor attention globally.

The global data center market is projected to grow from US$242.7 billion in 2024 to US$584.8 billion by 2032, representing a compound annual growth rate of 11.7% 1.

Existing data center REITs in Singapore have demonstrated strong performance metrics, with occupancy rates consistently above 90% and positive rental reversions indicating strong demand 2.

This asset class has proven attractive for its stability, as moving data centers can cost tenants between $10-20 million, creating a “sticky” tenant base that helps ensure steady revenue streams 3.

The growing adoption of AI technologies is further accelerating demand, with data center REITs like Keppel DC REIT specifically citing AI as a driver of future growth in their earnings outlooks 2.

2️⃣ Singapore’s market revitalization efforts bearing fruit with significant listings