Japan’s Nippon Telegraph and Telephone (NTT) intends to raise US$773 million from the initial public offering (IPO) of its data center real estate investment trust (REIT) on the Singapore Exchange (SGX).

The company plans to use the funds raised to develop additional data center assets.

This IPO represents the largest REIT listing on SGX’s mainboard in the past decade.

The NTT DC REIT portfolio includes six data centers located in Singapore, Austria, and the US, with a total appraised value of US$1.57 billion. The offering will consist of around 1.03 billion units, priced at US$1 per unit.

Of the total offering, 599.89 million units, or over 58%, will be available. Out of these, 569.89 million units are allocated to institutional and overseas investors, while 30 million units will be offered publicly in Singapore at S$1.276 (US$0.94) each.

Seven cornerstone investors, including GIC, UBS Singapore, and Pinpoint Asset Management, will purchase 172.77 million units, which represent 16.8% of the offering.

GIC will hold 9.8% of the REIT after acquiring 100.88 million units. NTT, as the sponsor, will subscribe to 257.55 million units, accounting for 25% of the total offering.

Units of the REIT are expected to begin trading on SGX’s mainboard on July 14.

🔗 Source: The Straits Times

🧠 Food for thought

1️⃣ Singapore solidifies position as Asia’s REIT hub with landmark listings

NTT DC REIT’s $773 million listing represents Singapore’s strategic positioning in the specialized REIT sector, becoming the largest REIT IPO in a decade on the Singapore Exchange.

This significantly exceeds previous major listings like Manulife US REIT ($519 million in 2016) and United Hampshire US REIT ($599 million in 2020), demonstrating a scale-up in Singapore’s REIT market capabilities 1.

Singapore has cultivated a REIT-friendly ecosystem with three data center REITs now listed (Keppel DC REIT, Digital Core REIT, and NTT DC REIT), creating a specialized hub for this high-growth asset class 1.

The involvement of GIC taking a substantial 9.8% stake signals strong sovereign wealth fund confidence in both the REIT structure and data center assets as institutional-grade investments 1.

NTT’s statement about choosing Singapore over Japan and the US for listing highlights Singapore’s competitive advantage in attracting global REIT listings through regulatory frameworks that accommodate diverse international asset portfolios 1.