A Historic Move in the Singapore Market!

Japanese telecom giant Nippon Telegraph and Telephone (NTT) is set to make waves in the Singapore stock market by launching a billion-dollar real estate investment trust (REIT), likely to be the largest in over a decade!

What’s on the Table?

The REIT, named NTT DC Reit, will encompass six of NTT's prime data center assets valued at approximately $1.6 billion. Among these sites, four are strategically located in the U.S. (three in California and one in Virginia), with another in Vienna, Austria, and the final asset nestled in Singapore.

The Big Numbers Behind the Listing

The anticipated offer price is $1 per unit. This bold move comes from NTT Limited, a significant part of the NTT Group, holding a staggering market cap of around $95 billion as of late June.

Why Now?

In their recent IPO prospectus, NTT highlighted strong growth potential in the global data center market. With rising data center prices and decreasing vacancies, they note substantial room for further growth, opening doors for high-quality acquisitions post-IPO.

Financial Projections that Impress!

Hitting the ground running, NTT DC Reit is projected to have net assets worth $1 billion by the end of 2024. With revenues from last year standing at $178.7 million, the future looks promising, with forecasts estimating net property income to reach approximately $75.9 million by March 2026.

Star-Studded Investor Lineup!

Among its cornerstone investors, Singapore’s sovereign wealth fund GIC plans to invest $100.9 million, securing 100.9 million units in the REIT, highlighting confidence in its potential.

A Boost for the Local Bourse?

This ambitious listing comes at a crucial time, as the Singapore market has seen more companies opting for global exchanges rather than local listings. Following the Monetary Authority of Singapore's recent recommendations to elevate the equities market, NTT DC Reit might just be the catalyst needed for a robust market revival.

Stay tuned for this exciting journey as NTT makes a monumental leap into the Singaporean financial scene!