Potential Upcoming IPO

HMC Capital Limited (ASX:HMC) has provided an update on ASX regarding the establishment of a new digital infrastructure REIT.

DigiCo Infrastructure REIT (‘DigiCo’ or ‘Company’) will be a diversified owner, operator and developer of data centres globally. It’s objective is to provide securityholders with a diversified global exposure to the data centre sector and provide superior, risk-adjusted returns underpinned by stable and growing distributions while also targeting strong income and capital growth.

DigiCo will initially own 12 assets located in Australia and the US (variety of Stabilised, Value-Add, and Developments) with a total acquisition price of ~$3.9bn.

Managed by HMC Capital, an ASX-listed alternative asset manager with A$15.4bn AUM across high conviction alternative asset classes, supported by market leading investment capability and track record.

The intention is to raise ~$2.6bn of new equity to establish DigiCo REIT – which will be seeded with $4bn+ of AUM. DigiCo’s differentiated strategy is targeting a 4% annual distribution yield, supported through annual contract revenue escalations, long term customer relationships and low customer churn rates.

HMC Capital will invest $500m (18.2%) in DigiCo REIT.

Morgans is a Joint Lead Manager and the Retail Syndicate Co-Ordinator to the Offer.
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Please contact your Morgans adviser with any questions.