(April 11): Blackstone Inc filed for an initial public offering (IPO) of a new data-centre acquisition vehicle that plans to buy already-built and leased properties benefitting from the artificial intelligence (AI) boom.
The new vehicle, Blackstone Digital Infrastructure Trust Inc, will target newly built data centres valued at between US$250 million and US$1.5 billion ($1.9 billion) and leased to investment-grade hyperscalers, according to a filing on Friday with the US Securities and Exchange Commission. The properties are expected to yield 5.75% to 7% a year, or more, and the rent would automatically rise by 2% to 3% annually, the filing said.
Blackstone plans to raise about US$2 billion from the IPO, which could begin formal marketing later this month, Bloomberg reported earlier on Friday. The firm has already approached sovereign wealth funds and other institutions for the first checks, aiming eventually to raise tens of billions of dollars from a broader group of investors.
The move encapsulates two of the US$1.3 trillion alternative-asset manager’s biggest initiatives: its bid to become the world’s largest investor in AI infrastructure and its push beyond pensions and endowments to reach individual investors. The offering also builds on Blackstone’s broader push into data centres.
Blackstone has invested tens of billions of dollars in data centres and the infrastructure that powers them, making the sector one of its biggest plays and underscoring how AI infrastructure requires vast amounts of land, power and capital.
The vehicle, structured as a real estate investment trust, would be among the 10 biggest IPOs ever by a REIT, according to data compiled by Bloomberg.
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Blackstone Digital Infrastructure Trust will be externally managed by a Blackstone-affiliated entity in return for base and incentive fees and will have priority over other Blackstone funds for data-centre acquisitions sourced by the firm. Another affiliate is also expected to purchase shares in the IPO, according to the filing.
The offering is being led by Goldman Sachs Group Inc, Citigroup Inc, Morgan Stanley, Barclays plc, Bank of America Corp, Deutsche Bank AG, JPMorgan Chase & Co, Royal Bank of Canada and Wells Fargo & Co. The company expects its shares to trade on the New York Stock Exchange under the symbol BXDC.
Uploaded by Tham Yek Lee
