Digital Realty Trust is targeting approximately $3bn (€2.6bn) in cornerstone commitments for its Digital Realty Flagship Fund Americas, according to a board meeting document prepared by Aon for the Arkansas Teacher Retirement System (ATRS).
ATRS has approved a $100m commitment to the open-ended Digital Realty fund, which will target core-plus investments in North American hyperscale data centre assets.
The fund targets long-term net internal rate of returns (IRR) of 9% to 11% and a dividend yield of 4% to 6%, supported by moderate leverage projected at 40% to 50% loan-to-value.
Average deal sizes are projected at a minimum of $550m, with Digital Realty expected to issue a sponsor commitment of at least 10% to the fund.
Digital Realty did not respond to a request for comment.
ATRS has expanded its real estate portfolio with a $75m commitment to Long Wharf Real Estate Partners VIII.
The mid-market US value-add fund is seeking to raise $500m, with a first close expected in the second half of 2026.
The fund targets net IRRs of 12% to 14%.
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