Digital Core REIT, a pure-play data center REIT sponsored by Digital Realty, announced today it has agreed to sell interests in three North American assets and use the proceeds to acquire partial interests in one data centre in Singapore, one data centre in Osaka, pay down debt, and repurchase units on the open market.
The proposed deals involve the sale of Digital Core REIT’s 90 per cent interest in 371 Gough in Toronto to Digital Realty for C$180 million (US$127 million); the sale of its 90 per cent interest in 200 N. Nash in Los Angeles to Digital Realty for US$79 million; and the sale of a 39 per cent interest in 8217 Linton Hall in Northern Virginia to Digital Realty for US$110 million.
Upon completion of the divestments, the Singapore-listed REIT has proposed to acquire a 2.5 per cent interest in 11 Loyang Close in Singapore from Digital Realty for S$87 million (US$68 million), as well as acquire an additional 25 per cent interest in Digital Osaka 3 from Digital Realty for ¥17.6 billion (US$108 million), more than doubling its ownership stake from 20 to 45 per cent.
Digital Loyang 2 is a five-storey data center providing over 42,000 kW of critical IT load. It forms part of the Digital Realty Loyang Campus, near the Changi North Cable Landing Station in Singapore.
As of June 2026, Digital Core REIT’s portfolio includes assets in the US, Canada, Germany and Japan.
The sale of interests in the three North American assets is expected to generate gross proceeds of about US$316 million, while the purchase of partial interests in the Singapore and Osaka data centers is expected to cost about US$176 million, givng net proceeds of about US$140 million.
Out of that, the REIT plans to spend about US$117 million to pay down debt and up to US$20 million to repurchase units on the open market.
The transactions are expected to close before year-end.
“With this transaction, we expect to tactically enhance Digital Core REIT’s portfolio mix, leverage and distribution per unit, in an effort to better position the REIT for the unprecedented opportunity we see ahead,” said Digital Realty Chief Investment Officer Gregory S. Wright. “Digital Core REIT was formed to capitalise on the enormous growth potential within the data centre sector, which is now materialising in the midst of the sector’s ongoing investment cycle.”
“This transaction marks our entry into Singapore and strengthens our presence in Japan – a pivotal step in our strategy to expand in the Asia Pacific region,” said John J. Stewart, CEO of Digital Core REIT Management Pte. Ltd., the Manager of Digital Core REIT.
“The transactions offer unitholders the opportunity to participate in near-term embedded growth from stabilised investments while reducing near-term CapEx funding requirements yet preserving the ability to participate in long-term development potential by retaining a 51% stake in 8217 Linton Hall in Northern Virginia.”
The transactions are expected to be about 4.1 per cent accretive to Digital Core REIT’s Distribution Per Unit (DPU), while aggregate leverage is expected to improve by about 290 basis points, from 39.2 per cent as at 30 June 2026 to 36.3 per cent pro forma for the proposed transactions.