- Lior mor
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- 4 Min Read
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- 7 seconds ago
Key Points
- DigiCo Infrastructure REIT agreed to sell its Chicago data center for $750 million.
- The deal represents a roughly 5% premium to its 2024 acquisition price.
- Proceeds are expected to significantly strengthen liquidity and support shareholder returns.
Strategic Asset Sale in Chicago
DigiCo Infrastructure REIT announced it will sell its CHI1 data center facility in Chicago to a North American fund manager for $750 million.
The transaction reflects a modest premium to the asset’s purchase price in November 2024, signaling stable valuation growth in the data center sector.
Liquidity Boost and Capital Flexibility
The sale is expected to generate approximately A$360 million in net cash after debt repayment, increasing DigiCo’s total liquidity to around A$0.9 billion.
This improved financial position provides the company with greater flexibility to pursue capital allocation strategies, including potential enhanced distributions to shareholders.
High-Quality Asset with Long-Term Lease
The CHI1 facility has a capacity of 32 megawatts and is leased to a major hyperscale customer under a 15-year agreement.
Such long-term contracts are a key feature of data center investments, offering stable and predictable income streams.
Capital Recycling Strategy in Focus
The divestment aligns with a broader trend among infrastructure and real estate investment firms to recycle capital.
By monetizing mature assets, companies can redeploy funds into higher-growth opportunities or return capital to investors.
Outlook
The transaction, expected to close in the first quarter of fiscal 2027, highlights continued investor demand for data center assets amid rising global digital infrastructure needs.
DigiCo’s next moves will likely focus on optimizing its portfolio and leveraging its strengthened balance sheet to capture future growth opportunities.
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