Digital Core REIT is increasing its stake in the Osaka data centre it partially owns by another 10%.

This additional stake is being acquired for JPY7,725 million (approximately USD51.5 million) based on the agreed value of the asset.

Digital Core REIT presently owns a 10% stake in the asset.

The total acquisition outlay for the acquisition is expected to be approximately JPY7,832.3 million including fees and acquisition costs.

“The acquisition of an additional 10.0% interest in the Osaka data centre will expand Digital Core REIT’s presence in a top-tier global data centre market characterised by robust, diverse and durable customer demand”, said the REIT in its 1 April statement.

“The acquisition will improve Digital Core REIT’s overall geographic diversification and expand its presence in Japan”.

“The acquisition will reduce the total annualised rent contribution from North America from 82% as at 31 December 2023 to 68% pro forma for the acquisition and other strategic transactions”, the REIT added.

Digital Core REIT was last done on the SGX at USD0.595, which presently implies a distribution yield of 6.22% according to data on the Singapore REITs table.

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By Shariffa Al-Habshee

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