SDC Capital considering US$1 billion Singapore Reit IPO: sources

[SINGAPORE] US digital infrastructure firm SDC Capital Partners is planning a real estate investment trust (Reit) listing in Singapore that could raise about US$1 billion, according to people familiar with the matter.

SDC is working with advisers on the potential initial public offering, which might take place as soon as next year, the people said, asking not to be identified discussing confidential information.

Deliberations are ongoing and details such as size and timing may change, they added. A representative for SDC declined to comment. 

Reit IPOs have been dominating the market in Singapore, including those with links to data centres and artificial intelligence.

Last year NTT DC Reit, a data centre investment trust backed by Japan’s NTT, raised US$773 million in what was Singapore’s biggest IPO in eight years. That was topped in February by UI Boustead Reit, which raised US$807 million. Centurion Accommodation Reit’s IPO was the third-biggest of recent years. 

Others in the pipeline include Blackstone-backed data centre operator AirTrunk, which is planning a Reit IPO that could raise about US$1.5 billion, people familiar with the matter have said.

US technology giants Alphabet, Meta Platforms, Microsoft and Amazon.com have pledged almost US$2.4 trillion in spending on data centres and related equipment in the coming years, underscoring the scale of investment in the infrastructure needed for AI. Amid the euphoria, there’s been some investor concern over whether the rush will actually pay off.

Founded in 2017, SDC develops and invests in data centres, fibre networks, wireless infrastructure and cloud services. It has about US$12.5 billion of assets under management, its website shows. American private equity and growth capital firm Thoma Bravo made a minority investment in SDC last year.

All in, Singapore IPOs have fetched over US$1 billion this year, data compiled by Bloomberg show. While AirTrunk may still add to the haul, the city-state lags far behind fellow Asian financial centre Hong Kong in IPO proceeds. BLOOMBERG