Singapore-listed Digital Core REIT is buying an additional 24.9% interest in a data centre in Germany for €117m from Digital Germany Holding, a subsidiary of Digital Realty Trust.
The acquisition will lift Digital Core REIT’s interest in the data centre located at Wilhelm-Fay-Straße 15 and Wilhelm-Fay-Straße 24 in Frankfurt to 49.9% alongside Digital Germany which will hold the remaining 50.1% stake in the data centre.
Digital Core REIT first bought a 25% stake in the facility in December 2022.
In a filing, Digital Core REIT said it intended to fund the total acquisition cost with the proceeds from the sale of properties in Silicon Valley to Brookfield Infrastructure Partners and its institutional partners for $160.2m (€147m). It also intended to fund the Germany acquisition partly with the $117m equity raised from private placement last month.
The manager said the acquisition would improve overall portfolio credit quality and it would increase the total annualised rent contribution from investment-grade customers from 78% in 2023 to 87%.
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