Some market watchers are concerned about capital management, as the cost of debt of 3.2% is largely from SGD and Yen debt.
AirTrunk’s data centre REIT IPO is likely to list at a 5.5% yield, with an aggregate leverage of around 36% and with the sponsor holding 48%. The market capitalisation at IPO could be in the vicinity of $3.6 billion, with the REIT raising around $1.9 billion.
The largest asset could be an 80% stake in a data centre in Melbourne, with an asset value of more than $2 billion, with the second largest asset in Singapore, also at around $2 billion. The number 3 data centre in size is in Osaka, followed by Hong Kong. The Melbourne property has a relatively long weighted average lease expiry of seven years. The pipeline assets are likely to be from Singapore and Melbourne.
