NTT DC Reit’s offering consists of 599.89 million units, with the sale of US$1 each, or slightly more than 58%. From July 14, units of Reit will start trading on the mainboard.
Japanese telecom company Nippon Telegraph and Telephone (NTT) will raise US$773 million (S$988 million), the highest Reit listing on the Singapore Exchange (SGX) mainboard in ten years, with the initial public offering (IPO) of its data centre real estate investment (Reit).
The portfolio of NTT data centre (DC) Reit includes six data centres with an estimated value of US$1.57 billion, located in Singapore, Austria, and the United States (US). The NTT Group is one of the largest data centre operators in the world, with total assets of about US$201 billion.
NTT DC Reit’s offering consists of 599.89 million units, with the sale of US$1 each, or slightly more than 58%.
It includes 30 million units publicly offered in Singapore for $1.276 per unit, and 569.89 million shares offered to institutional and foreign investors.
Seven investors have agreed to buy 172.77 million units or 16.8% of the offering, in addition to the public sale. They consist of Singapore’s sovereign wealth fund, GIC, Viridian Asset Management, UBS Singapore, and Pinpoint Asset Management.
GIC will purchase 100.88 million of the units available to the investors, making it a significant unit holder with a 9.8% holding right after listing.
NTT has committed to buying an additional 257.55 million units, or 25% of the offering’s value.
NTT DC Reit’s offering includes around 1.03 billion units. From July 14, units of Reit will start trading on the mainboard.
Yutaka Torigoe, CEO of NTT DC Reit Manager, stated that the company chose Singapore for its listing after considering Japan and the United States due to its established Reit market, which welcomes international asset portfolios. He added that the company plans to use the funds raised to expand its portfolio of data centre assets.
NTT DC Reit is the third data centre Reit to list in Singapore after Keppel DC Reit and Digital Core Reit.
Manulife US is the first pure-play US office Reit in Asia and the largest Reit listing on SGX with US$519 million when it debuted in 2016. United Hampshire, a US portfolio that focuses on grocery-anchored shopping centres and self-storage facilities, was valued at US$599 million when it started its Reit IPO in 2020.
NTT DC lists its IPO at the same time SGX is trying to attract more investors and companies who are keen to list here after a sluggish first half of 2025.
The local software company Info-Tech Systems made a successful debut on the mainboard, completing its first day of trading at 91 cents before falling to 88 cents, just 1% higher than its initial public offering price.
Lum Chang Creations, Dezign Format, and China Medical System are other listings in the pipeline.
The global data center industry is expected to double in size by 2031, reaching an estimated value of US$584.8 billion.
Despite its limited geographic size, Singapore hopes to play a significant role in the data centre industry as part of its digital transformation goals. It is estimated to cost between $10 billion and $12 billion to expand Singapore’s green data.
Since demand exceeds supply due to land and power constraints, there is a decline in data centre vacancies. As of last year, NTT DC Reit reports that 90% of the Singapore facility in Serangoon is occupied.
The Chief Financial Officer (CFO) of NTT DC Reit Manager states that Singapore is a desirable data centre market due to its strong connections, central location, and significant relevance to regional and global data traffic.