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NTT recently submitted a draft prospectus for its NTT DC REIT IPO on the Singapore Exchange. The REIT will include six data centre facilities across the U.S., Austria, and Singapore, with a combined value of around USD 1.6 billion. Expected to fetch up to USD 1 billion, the listing is set to be among Singapore's largest and has already attracted major backers, including GIC, AM?Squared, and Viridian. The move aligns with Singapore's revived equity market, which recently saw a surge in IPO activity boosted by policy incentives.
Japan's Nippon Telegraph and Telephone Corp (NTT) has officially submitted a draft prospectus for the listing of its data centre real estate investment trust (REIT), NTT DC REIT, on the Singapore Exchange. The trust will consist of six fully operational, income-generating data centre facilities located in Singapore, the United States, and Austria, collectively valued at approximately USD 1.6 billion. Advertisement
The proposed offering is expected to raise up to USD 1 billion, positioning it among the largest IPOs seen in Singapore in recent years. By comparison, the city-state's last major REIT IPO Digital Core REIT raised about USD 977 million in 2021.
According to the indicative term sheet, the base offering will range between USD 772 million and USD 812 million, with an additional USD 51.5 million available through a greenshoe (overallotment) option. Should the greenshoe be fully exercised, the trust's implied market capitalisation could reach approximately USD 1.08 billion. NTT plans to retain a 20% stake in the REIT post-listing, ensuring a continued strategic interest in the venture.
The REIT has also attracted significant institutional interest. Singapore's sovereign wealth fund GIC has committed USD 101 million, joining other cornerstone investors such as AM Squared and Viridian Asset Management. This strong backing indicates market confidence in the resilience and growth of data infrastructure assets.
Projected distribution yields are in the range of 7-7.5% for the upcoming months, with estimates rising slightly to 7.29-7.80% for the following financial year. These figures suggest a healthy income return for investors, especially within a sector seeing continued expansion driven by demand for cloud computing, AI, and enterprise data services.
NTT's move comes as Singapore?s capital markets experience renewed vigour, supported by a 20% tax allowance for qualifying primary listings. Total IPO proceeds in the first half of the year reached around USD 331.6 million, marking a significant rise from approximately USD 59.3 million in the same period last year. This uptick has been attributed to policy support and investor enthusiasm for yield-generating assets.
The bookbuilding process is currently underway, and the listing is expected to take place in the near future, subject to regulatory approvals.
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