HMC Capital Limited (ASX: HMC) [HMC] announced today [24 October 2024 AEDT] key initiatives to establish a global digital infrastructure platform (Global DigiCo Platform) comprising the global DigiCo Infrastructure REIT (DigiCo REIT). It is intended to list this platform on the ASX alongside a new institutional Unlisted Fund.
HMC reports that it has agreed terms to acquire 100% of Global Switch Australia for $1.937bn. The “highly strategic” 26MW colocation data centre is located in the Sydney CBD and represents a seed asset for the Global DigiCo Platform. HMC describes the asset: “Global Switch Australia currently comprises two adjoining data centre sites in Sydney, representing the only large-scale data centre campus in the densely-connected Sydney CBD and one of the largest data centre campuses in Australia”. They do on to indicate that the asset offers significant growth opportunity with large scale development pipeline, sufficient [identified] to expand within the existing IT capacity to 88MW.
To underwrite this Acquisition, HMC is undertaking a $300m fully underwritten institutional placement. This is consistent with HMC’s strategy to maintain a strong and flexible balance sheet and actively recycle capital to over time achieve group wide ROE of 20%+. Subject to the satisfaction of certain conditions precedent, the Global Switch Australia transaction is expected to reach financial close in 1Q CY25 with Global Switch Australia being acquired by DigiCo REIT.
HMC Managing Director and CEO, David Di Pilla, said “We are excited to today announce a major
acquisition to seed our global digital infrastructure platform. Global Switch Australia is a strategically located Tier 1 asset with significant repositioning and expansion upside. This is consistent with our strategy to build a world-class global platform providing investors with exposure to institutional grade digital infrastructure assets underpinned by attractive megatrends”.
The acquisition of Global Switch represents a step in establishing HMC’s Global DigiCo Platform across ASX listed and unlisted funds with DigiCo REIT intended to be listed on the ASX alongside a new institutional Unlisted Fund. HMC indicates that it has identified multiple seed assets, predominately based in the United States, which are currently under exclusive due diligence. These assets include Tier 1 hyperscale and enterprise data centres, colocation facilities and higher returning development opportunities.
For full details of the transaction and its basis please visit:
