Digital Core REIT Frankfurt asset

Digital Core REIT is acquiring an additional 24.9% stake in the Frankfurt asset it partially owns for EUR117 million.

The stake is being acquired from Digital Germany Holding LLC, a wholly-owned subsidiary of the REIT’s sponsor, Digital Realty.

Digital Core REIT first acquired a 25% stake in the asset in December 2022.

The asset is an institutional quality freehold data centre with 449,546 net rentable square feet as at 31 December 2023.

It is 92.0% leased to a roster of blue-chip customers, said the REIT.

In November 2023, Digital Core REIT disclosed that it is disposing of its assets, 2401 Walsh Avenue and 2403 Walsh Avenue in Silicon Valley.

The sale was completed on 15 January 2024 and Digital Core REIT received consideration of about USD160.2 million from the sale.

The REIT will now deploy proceeds from this sale, and a portion of proceeds from its 1Q 2024 private placement, to fund its latest acquisition.

Total consideration for this acquisition, including related fees, will be approximately USD131.3 million.

Digital Core REIT was last done on the Singapore Exchange at USD0.61, which presently implies a distribution yield of 6.07% according to data on the Singapore REITs table.

Related: Digital Core REIT reflects upon ‘lesson learned’ from tenants’ bankruptcies

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.